this post was submitted on 26 Aug 2024
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I know I'm in the minority but I am also a software developer, and I think subscriptions are a much healthier payment model for everyone. The issue IMO is not recurring payments but the total cost of ownership.
"Digitial goods" is very rarely just a thing that you produce once and then it's done. The OS is regularly updated which causes incompatibilities, app stores introduce new demands, and there's a constant stream of security vulnerabilities in your dependencies that need to be patched. Failing to adress any of these things breaks the social contract and causes rage among your users ("I PAID FOR THIS, WHY ISN'T IT WORKING/WHY AREN'T YOU FIXING BUGS/etc"). Even movies and music need to be maintained because new media formats are introduced, streaming services have to be kept responsive and up to date etc.
A subscription models the cost distribution over time much better, and it does benefit the users because it means the company can keep updating their shit even if new sales drop, instead of going bankrupt.
I don't think this stops with just digital goods. Manufactured products (and the environment) would also benefit from a subscription model because it means there's no incentive for planned obsolescence. It's an incentive for keeping the stuff we already built working for a long time, instead of constantly producing new crap and throwing the old in a landfill.
But, the caveat is that this shift must not result in higher total cost of ownership for the end users over time. In fact, it should reduce the cost because repairing and updating is cheaper than building new stuff. The way many companies are pricing subscriptions today, they are being too greedy.
What are your thoughts on ownership?
I feel a subscription model takes power away from me. Just like UBI would.
It just seems like a bad idea long term.
Depends what kind of ownership you're thinking about. When it comes to electronics, "ownership" is just subscription with a longer period between payments. Your existing phone, tablet, TV, dishwasher or what have you will last a finite time and then you have to buy a new one.
If there's something that will last a lifetime, that's a different discussion. But those are rare. Almost every purchase you make is a commitment to a recurring cost.
That's an interesting perspective, and it makes sense for certain objects.
I also disagree with something you're implying. If you build a proper headphones it will last forever. It's a symptom of a broken system to create headphones that break every 3 years. That applies to many objects that I can think of right now.
I agree that the current system is broken. So let's say that instead of paying $300 for a pair of headphones that last three years, you pay $8.33 / month for renting the headphones. Now, if the headphones break after three years the manufacturer has to produce new ones for you. That's an undesirable cost for them.
It is now in their best interest to make headphones that will last a long time and that they can repair if something breaks. But also, since you can easily cancel the subscription at any time, it is in their interest to offer you something that is competitive. They might even upgrade to better technology over time or add new features to the bundled app to keep you as a customer. Or alternatively, lower the subscription cost over time to reflect the relative value of the headphones.
For you, there's also the benefit that there's no high upfront cost that you can't reverse. You're paying for what you can afford in your current situation. If you lose your job you can stop paying for the headphones at a moment's notice. I imagine that this would leave fewer people in credit card debt.
Or we could fix the system and I have the right information as customer to be able to purchase a headphones that lasts long and can be repaired.
I'd argue we need a market that provides more useful information to the customer.
For example I'd like to know what environmental impact my products have. How long I'll be able to get replacement parts. Longer guarantees perhaps. The ability to upgrade. I'm not an expert on the details.
At the moment I'd prefer to own rather than to rent. Quite frankly what you're imagining sounds dystopian to me because you lose power.