Tech’s broken promises: Streaming is now just as expensive and confusing as cable. Ubers cost as much as taxis. And the cloud is no longer cheap::Some tech is getting pricier and looking a lot like the older services it was supposed to beat. From video streaming to ride-hailing and cloud computing.
Right. This is how it works. The marketplace sustained a value for watching entertainment at home (cable tv). When pricing outstretched customer desire to use the product, the business changed to start selling the service connection in addition to advertising to create another revenue stream. It got so ubiquitous that people don’t even remember that OTA tv was the majority solution for decades and was completely funded by ads. Eventually, prices stabilize and the business can only make more money by acquiring a larger share of the market or innovating something new. They’ll always try to increase that price, but it is balanced by how many customers choose to give up the service.
When streaming platforms disrupted that business model, they were cheap because they had to convince the marketplace to change. As adoption got more prolific, pricing changes to recoup early losses… then to increase value to become more attractive to the customer and gain more market share… then to increase profits.
We are still at the point you can cancel the service and jump around on a monthly basis, but the days of 12 month contracts are right around the corner… and they’re coming fast.