Comment by bossyTeacher

5 hours ago

> Don't even need claude anymore at their insane prices for anything I do.

What insane price is that? Pro is $20 per month. Same price as a Netflix ad free sub.

Until they stop to subsidize.

  • Let's try a thought experiment. It's not subsidized. It's not "worth" the tens of times it costs if accessed through API. Let's drop the subsidy word, they're selling you a product, and they're trying to sell other people a similar product at 30x the price with some excuses. If either (or both) turns out to be unsustainable, they haven't been subsidizing you, they just had a crap business model (or a perfectly good one, if the goal was an inflated valuation, an IPO and then a crash once the losses are socialized).

  • They might raise the price, but I don't think they will ever get rid of the $20 tier. It is way too consumer friendly and likely has the highest percentage of users that aren't abusing their quota limits. A layperson will be extremely hard pressed to create an API key, know what to do with it, put money in their account. People want an easy subscription.

Are they going to get to $200B revenue in 2028 at $20/month? That's a billion monthly subscribers. In 2028.