eli5: Why is it cheaper to buy streaming subscriptions by the year?

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For example, I just renewed by subscription to Crave, which is basically the Canadian HBO Max. I could buy it for $20 a month or $200 for the year. I did the year, saving myself about $40. Why do services do this?

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Anonymous 0 Comments

It’s kind of like buying in bulk too. The more you buy (a years worth up front) the bigger the discount you get. Also with time value of money, it’s better for them to have money now than to wait to get it.

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