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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A lot of people sign up for a streaming service for a single month, watch what they want, and then cancel it. So, in your example, Crave would only get $20 from that customer.
But, if they convince you to sign up for the entire year, they have gotten $200 from you, regardless of if you finished watching all of the content that you’re interested in.
The basic concept is that businesses are willing to give a discount for guaranteed money to prevent the chance that you might cancel early.
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