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Comment by hiAndrewQuinn

5 days ago

> You can't find me a single example of two competing services, one with click to cancel and the other without, in the same industry.

We can get pretty close. Take Adobe versus Affinity. Same industry, very similar product suites, but totally different pricing strategies, and Adobe makes cancellation much more annoying.

There are plenty of examples of this if you keep your eyes open. I'm pretty sure the only reason I don't have an exact example to give you is because I'm under NDA and I don't watch most consumer retail enough to know.

>Companies pay attention to what their competitors are doing. If everyone is doing it, they'll happily go along with it.

Tacit collusion becomes exponentially more difficult to maintain in any market with more than a handful of players. A different pricing strategy is one of the easiest ways to counterposition against an incumbent there is. It's part of how SaaS toppled bubble wrap CDs in the first place.

That can be lower pricing with the same model, or it can be a one time purchase versus a subscription, or it can be a hard to cancel but very cheap subscription over a very expensive one time purchase.

> In the beginning, you paid for the service and no ads. But then hulu came along and had ad content for the lower tier. That started a chain reaction on the other streaming platforms where now they all do ads for paid content.

People are more willing to pay $10 per month with ads than $12 per month without ads. I don't find that especially shocking. The market figures out what people actually want, not what people say they want.

Say it were not so. Then we would see some Netflix renegades start a new streaming platform that is Ad Free Again™ and only a tiny bit more expensive than the competitors, and most consumers would switch. It's not impossible, but I haven't seen that happen yet.

>You might sign up for something with a click to cancel feature, there is absolutely nothing from stopping a company from quietly removing that option.

If I care enough about the feature and this price differential, I'll notice this and eventually go through the aggravation of cancelling to switch to a new, slightly higher priced service which does have click to cancel. I paid more for the easy cancellation promise and when it was revoked the service became less valuable to me. Whatever, it was fun while it lasted. A monthly subscription to Netflix is not a marriage, and it is not an investment.