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Dear startups: I hate subscription services (2021)

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Re: Dear startups: I hate subscription services (2021)

#101
post #30

Earlier quoted context omitted.

So don't subscribe to them.

You can see the unsubscription flow only after subscribing. Thus you can't make your buying decision based on it.

You usually can with a bit of research or asking for it. You are however not certain it won't change.

Re: Dear startups: I hate subscription services (2021)

#102

Earlier quoted context omitted.

You own a license, instead of paying for a license in perpetuity.

When the software requires continuous updates and a server component and storage and things, this doesn't make any sense.

There’s a ceiling, a point you can never pass, with a subscription model due to churn. There isn’t a ceiling with one-off purchases.

Re: Dear startups: I hate subscription services (2021)

#103
post #10

Dear customers: we know. But our businesses are viable as subscription services, and not as one-off or ad-hoc puchase models. We know because we tried them. So we're catering to the people who are OK with buying a subscription because there are enough of them. Sorry if that doesn't suit you.

> But our businesses are viable as subscription services, and not as one-off or ad-hoc puchase models. Doesn't explain businesses that had been per-purchase for a long time and are now still switching to subscriptions though. (E.g. photoshop, jetbrains...)

Software used to require little maintenance work. You would buy your software and run it without a single byte changed for 5 or 10 years, and then buy a new version. This worked because OS updates were rare, and everything was local and file-based. In the modern era though software requires continuous maintenance, because we expect our data to move freely between all our devices and the cloud, because operating system vendors force breaking changes often (especially apple), because we expect more integrations with other software, and in general because we expect software to continually receive feature updates. This maintenance has to be paid somehow, and subscriptions have proven to be the most acceptable model.

Jetbrains is a great example, because with a steadily growing ecosystem of third party developer tools that they must integrate with, their maintenance cost is probably high and rising. We expect our IDE’s to support everything under the sun but balk at paying for the never-ending work needed to support that. Something’s gotta give in that equation.

Re: Dear startups: I hate subscription services (2021)

#104
One thing the article seems to miss out: price.

Some subscriptions are horribly expensive. $8/month for something I’d be happy to pay $10/year.

That’s the real problem. A lot of services come out at $50/$60 per year with minimal improvements over an OSS or ad-supported tool.

Re: Dear startups: I hate subscription services (2021)

#106
I am pretty sure there is a business that can be built over managing all these subscriptions - something like European OpenBanking but that includes credit cards - and you just get a dashboard showing you all the subscriptions you have (that will be ticket shock) and then you can turn them off as needed.

Not sure if credit cards are in openbanking but that would be the core of it

Re: Dear startups: I hate subscription services (2021)

#107
Having worked in plenty of startups I know the critical need to have (a more than fair chance) your subscription customer is going to give you money in the future. MRR is the king of metrics, and without it most companies would be sunk.

However, for guys like Netflix or for those companies that ship cooking ingredients and recipes to your door, I would happily be gouged by them for one or two on demand purchases.

Re: Dear startups: I hate subscription services (2021)

#108
post #10

Dear customers: we know. But our businesses are viable as subscription services, and not as one-off or ad-hoc puchase models. We know because we tried them. So we're catering to the people who are OK with buying a subscription because there are enough of them. Sorry if that doesn't suit you.

> But our businesses are viable as subscription services, and not as one-off or ad-hoc puchase models. Doesn't explain businesses that had been per-purchase for a long time and are now still switching to subscriptions though. (E.g. photoshop, jetbrains...)

It does, as OP mentioned, they’re making money doing it and it’s a better business model for number of reasons.

For example, Adobe is the largest SaaS by revenue:

https://www.mikesonders.com/largest-saas-companies/

— Model clearly works if you look at Abobe’s revenue per year since 2004:

https://www.statista.com/statistics/266399/revenue-of-adobe-...

— Here’s a detailed history of Abobe, if you’re interested in the SaaS part, just search for “SaaS” on the page:

https://producthabits.com/adobe-95-billion-saas-company/

Re: Dear startups: I hate subscription services (2021)

#109

Earlier quoted context omitted.

You own a license, instead of paying for a license in perpetuity.

And how frequently would said license be renewed? How about for maximum flexability we do a per user rolling monthly license.

Surprisingly, people figured this out a long time ago. When you create something substantially different from what the customer originally paid for, you sell it as something different.

Re: Dear startups: I hate subscription services (2021)

#110

I don't mind subscriptions, I actually prefer them for many things. Especially for software I rely on I want the developers to consistently earn money so they keep motivated to work on it, do maintenance and fix bugs. I don't pay for software, I pay for the thing it allows me to do. Me paying a subscription fee creates an incentive and responsibility to keep things working. If there is a backend component to its even…

It blows my mind that there are people in this thread who think that a business should charge once for a product that requires iteration or continued backend support.

If I sold furniture, the designs and manufacturing processes and materials usage all undergo continuous iteration, yet when I sell you your chair, you don't have to keep paying me forever to keep using it.

Yes, you also don't get updates to it.

That is actually perfectly fine for countless bits of software.

I have 30 year old software, and it still does it's original job just fine, if I happen to be ok with all it's original limitations. It's too late to try to say that is an insane idea, since, I already have it in my hands to prove that it's possible.

And then there is media. Every provider wants to force everyone onto the perpetual rent, nothing to leave to your kids, model for books/music/video, not just software. What's the "it blows my mind" excuse there?

It does not blow my mind at all that there are people on HN trying to excuse and justify this rent-life hell they've created for everyone else. It is the most obvious thing in the world.

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