The bottom line is that most of us do not account for the multiple subscriptions that we end up paying at the end of the month. Is it worth it? Yes most of the time. But is it fairly priced? And what happens when giants like Facebook, Instagram and Youtube start joining the subscription party?
Cheap Internet - It is true that we made total peace with the fact that we have to pay for Netflix, Hulu, Pandora, Spotify. Those are meant to entertain us into our days, evening, nights and we feel it is fair to pay $9.99 per month for that. Though we never really took the time to visualize what the numbers really represent.
Let’s take for example, Netflix - the most popular service out there. Price tag = $9.99 per month. Netflix subscribers spend on average 1 hour 36 minutes using the service. Let’s debunk how weak or thought through the current subscription models are.
Scenario A: Paying for Netflix $9.99 and Spotify $10.99
After the 30 day period of using the respective service your minutes of enjoyment will have cost you:
Netflix: $0.0038 per minute (average time spent on Netflix = 1h36)
Spotify: $0.0075 per minute (average time on Spotify = 44 minutes)
Conclusion: Netflix’s minutes are much cheaper than Spotify.
Considering that if some players like Facebook and Youtube wanted to join the subscription superpower model, how much would they likely be charging us?
Those numbers are completely fictional, but let’s say they would charge us around $0.0050 per minute (a little bit more than Netflix and little bit less than Spotify). The formula would get us here:
Scenario B: Facebook and Youtube charging subscriptions
Facebook cost: $3.75/month ($0.0050 x 25 minutes per day)
YouTube cost: $9.00/month ($0.0050 x 1 hour per day)
It is interesting to then look at a digital news outlet example, when we realize that publications like the New York Times charge $20/month for their digital subscriptions. That means that people would have to spend hours a day reading the news and doing crossword puzzles to get in line with the current digital subscription models.
Even more shocking is this recent argument proning the fact that “people like to pay for the news”. These were the words used from many articles posted online this month celebrating The New York Times’ subscription revenue growth. The real buffoonery here is that NO ONE likes to pay for anything. It doesn’t mean that we don’t find pleasure in the service, we just do not like to break the bank, ever.
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