Comment by somenameforme
7 days ago
They're alienating plenty of paying customers as well. Many people will not pay to rent software, and I expect that number will increase as the number of companies trying to collect rent on software increases. Because $10/month (let alone whatever adobe is trying to charge) never sounds like a lot, but multiply by the number of pieces of software (let alone some non-software flirting with the same gimmick) you regularly use and it quickly becomes absurd.
A secondary issue is that rent-a-software stuff is driven by pea counters and they'll never be able to resist constantly raising the price once they can increase revenue x% with an action that, in the short term, will probably result in absolutely no decline in users. Of course in the longer term they're setting the stage for their own disruption, obsolescence, and revenue trending to $0.
I also expect this whole business model will be heavily regulated in the future, because what percent of recurring revenue, especially on things like mobile, is from people who simply forget to cancel or were not aware it was recurring in the first place?
It’s not just software rental. Every online shop or service is turning towards revenue extraction by targeted pricing: Services that look at your IRS records or other public clues, and hop, you train travel, Amazon listing, car repairs are billed higher, exactly at your purchasing power.
Yesterday there was an article saying an AI is used to infer the “right pricing for you”, and suspected it used variables such as your skin color, gender, job and location, probably discriminatory but mangled in a big AI engine.
In fact, I’d sell a REST API for adaptive pricing to mum & pop shops if I had time.