Moving to a subscription fee model is dangerous for a service that's reached saturation point. They can no longer project infinite growth in value extracted from eyeballs going into the future, and are stuck with whatever they choose to charge (along with some limited increases in fees. Building a better service cannot be fully leveraged into higher fees, since there's only so much YoY increase in costs users will stomach.)
On the other hand, subscription models are fine for new entrants, even with VC hyper-growth expectations - there are still billions of users to capture even if per-user revenue is fixed! Then the game becomes delivering as much value to these customers as possible to attract more paying users.
Perhaps this is another malincentive that comes about from monopolies.
On the other hand, subscription models are fine for new entrants, even with VC hyper-growth expectations - there are still billions of users to capture even if per-user revenue is fixed! Then the game becomes delivering as much value to these customers as possible to attract more paying users.
Perhaps this is another malincentive that comes about from monopolies.