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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11 Answers

Anonymous 0 Comments

It’s to entice subscribers into spending more money. A person who only buys a monthly subscription is probably only going to renew it once or twice to watch what they want. Someone who locks in for a year pays that money up front and might only use the service one or twice a year.