Elizabeth Barrette (ysabetwordsmith) wrote,
Elizabeth Barrette

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Milking Customers

Apple wants to change apps from a single purchase to a subscription.  This is a problem because people's income is finite and already under heavy demand.  Look at all the things that are changing in this direction. 

Used to be, you bought a television set and the programming came free.  You only had to budget it once.  Then came cable and dish and all those subscriptions, but they quickly began bundling channels, so at least you could pay one price and get a decent selection of things to watch.  Now it's spreading out to where either you subscribe to a lot of services or you miss major programming.  That scatters the audience and makes it harder for people to connect by discussing shows.

Used to be, if you got sick you went to a doctor and paid one bill, which if big enough might be broken down into payments.  Now you have to have insurance, which bills you routinely even if you're not sick, and might not pay you back if you are.  Caregivers often send multiple bills for even one visit.  Some people are paying as much or more for health care as a mortgage.

Used to be, you bought a computer and some programs, and that was it except for electricity and when you wanted a new program.  Now you need an internet connection, which is a significant monthly bill.  As more software shifts to a subscription basis, it gets more expensive to do things on the computer -- and more things in life must be done on a computer.

This adds up.  Subscriptions for important things eat up a larger and larger share of people's income, leaving less for things like food, clothes, and everyday travel expenses.  That means everything which shifts from single purchase to subscription model poses an ongoing  threat to financial stability.  It is therefore a bad idea.
Tags: economics, news

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