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 revenue certainty which is important for a business, it costs the same to entice a customer for a month or year, seeing fewer charges on bills create more inertia to keep subscribing (each time charged is a time to evaluate whether it’s worth keeping the subscription)

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