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

Question

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?

In: 0

Answer 1

if you buy it by the month, you can quit after a few months, so they will make a lot less than $200.

If you pay $200, you essentially locked yourself into at least 10 months of subscription.