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

Economics. The longer they can “hook you”, the more lenient you’ll be if anything changes to their service (price, catalog, etc…)