Comment by baggachipz
5 days ago
I don't see how it won't be. They lose insane amounts of money on subscription plans. I'm sure they still lose money on usage-based billing, but probably not as much.
5 days ago
I don't see how it won't be. They lose insane amounts of money on subscription plans. I'm sure they still lose money on usage-based billing, but probably not as much.
> They lose insane amounts of money on subscription plans
Do we know this? I’ve seen evidence they lose money on heavy users. But so do gyms.
How do gyms lose money on heavy users? A heavy gym user isn’t really costing the gym anything extra as far as I can see.
> How do gyms lose money on heavy users?
Most gyms sell more subscriptions than they can fit under their roof at one time. If a gym only sells to heavy users, it will either be constantly turning members away or have to buy more equipment. Its equipment will wear off faster. Depending on amenities, it will go through towels, soap, water, et cetera faster, too.
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>I’ve seen evidence they lose money on heavy users.
Where?
There are tons of blog posts where folks work out the API cost of their usage and find it well above subscription cost.
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I assume consumers aren’t a big note in their bottom line. I’m not actually very sure about that, just an assumption.
What I wonder however is if these tools will become something I use at work only. $100/month is already a massive stretch budget wise. If these models keep devouring tokens there’s no way I’d get the same usage time out of them for $100 in usage credits.
I just don’t think I’d use them much at all at home.