Earlier quoted context omitted.
I think the subscription pricing exists because it’s a far more palatable way to bill people for day to day personal use. I used Claude back when API per token pricing was the only option and it was bad for all the usual reasons pay-per-use sucks compared to flat billing: you’re constantly thinking about cost. Like trying to watch a Netflix video with a ticker in the corner counting up the cents you owe them. I don’t…
The bundle only works if it’s +EV for them. A lot of analyses (though not all - it’s complicated) say that the $200/mo bundle (and certainly the $20/mo bundle) costs more than that for most users, and the bundle is currently a loss leader. If so, then eventually prices will need to go up, and API per usage pricing will seem much more attractive.
When you ask it to do something and it goes off the rails, the payment plans have wildly different effects:
Subscription- oh well, let's try again with a different prompt
Pay per use- I just wasted money, this product sucks
Even if it is less common than not, it has an outsized impact on how people feel using it.