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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Because having less money now is more valuable to them than having a little more money in the future. There are a few things that cause this.
First, as a rule in life, a fixed amount of money is worth more now than in the future due to inflation.
Second, if they have money now, they can reinvest it. For streaming services this can mean licensing new content or doing marketing campaigns to increase their subscriber count, leading to more money in the future than you paying a slightly higher subscription fee.
Both of those factors are part of an economic concept called the “time value of money” if you want to learn more.
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