this post was submitted on 06 Nov 2023
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No reason to stop raising prices for any business, except for the fact that demand goes down as price goes up. People will cancel or downshift to a cheaper service.
There's a scene in Fight Club about how auto companies approach recalls, and a similar method is applied for these price hikes. The company predicts how many people will leave or change plans or whatever with their changes and they price it out so that they end up making more money.
And for a small example let's say you have two customers paying $10/month for a service. If the price increases by $11, and one customer leaves, you are now making $21/month from the service.
Now it's not as simple as that in the real world, but that's the general idea.
The issue here is that even if a vocal minority leave these streaming services, or social media there's still a large amount of people putting up with their shit.
That's literally what they teach you about basic economics at school..
The standard graph of price increasing on one side and customer demand decreasing on the other, and how companies try to find the crossover point.