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Just how many $10 /MOS subscriptions do startups expect us to sign up for?

8 points by jaggs 2 days ago | 14 comments

Lately it seems like we're drowning in a tidal wave of new products, all expecting $10+ a month as subs. Is this really sustainable in the long run? Or am I missing something?

jjice 1 day ago

There's no requirement to maintain a subscription. Each individual should be making this decision for themselves based on the value they get from a service vs the cost.

The broad "startups" in question are just businesses trying to sell a product. Not everyone is going to sign up, and not of those who do, most won't maintain their subscription forever.

> Is this really sustainable in the long run?

For who? For the startups? Maybe, depends on the value provided. For the users? Maybe, depends on if they feel they're getting value.

I'm kind of confused as to what the question is really asking.

Most people I know have a handful (making exception for things that have always been "subscription", like insurances): a streaming service or two, iCloud/Google One, and maybe a budgeting app or something more niche for a hobby of theirs. I'd argue that none of those are necessary, except maybe the cloud storage to retain information and backup their devices. User's can just vote with their wallets.

As for it being sustainable for a startup: who cares - a good product will be worth paying for an it'll survive.

(Hope the tone doesn't come off as rude, I'm just trying to shoot for brevity)

malfist 1 day ago

$10/month is a lot. You have to be solving a very critical need for me to sign up for that. $3-$5, not that big of a deal, $8 I'll think about it. $10 better be a major benefit

farseer 16 hours ago

Most charge way more than 10/month. Most startups also die.

owebmaster 2 days ago

My expectation is that the LLM providers will also start to bill for the AI startups through their APIs

chistev 2 days ago

They already do?

owebmaster 2 days ago

Yeah? Which one? You might not have understood what I meant

paulcole 1 day ago

As far as I know, OpenAI does charge for API usage.

If that's not what you meant, clarify?

owebmaster 16 hours ago

I meant OpenAI billing for me in the same charge, an external app integrating their API. So the user only pay once

paulcole 14 hours ago

I still don't follow you at all.

The way I understand it is that:

OpenAI bills people who use their API to build apps or whatever.

OpenAI also bills people who use its non-API products (like ChatGPT).

Am I missing something here or what is it that you dislike about this?

stillatit 2 hours ago

They're basically suggesting logging into a product with an OpenAI account and paying OpenAI directly for the product's AI usage. Presumably the product would get some cut of OpenAI's revenue.

Like AI is the gas that powers the AI product. OpenAI sells the gas, the product gets commission.

That was my understanding at least, since I've had the same thought.

runjake 1 day ago

They don't think about it that way. They only think about you signing up for theirs.

Oras 2 days ago

Are you concerned that startups will not be able to continue with these cheap subscriptions, or because you have to pay $10/product?

bhag2066 2 days ago

Not the OP but I personally would be interested in people's perspective on the # of $10 subscriptions the average person can sustain.

Using Fermi estimation, is it: 1, 10, 100? I would say 1 because I don't believe businesses can create enough value (save them time or money) for the average person to justify spending $100/month on subscriptions.

Another thought is how CISO's found themselves with 20 cyber subscriptions and found themselves wanting to consolidated down. So I would make this the absolute upper limit.

So I have somewhere between 1-20 with the average across the consumer population being somewhere closer to 1 than 20.

The implication being that there is a lot of pain coming for the long tail of startups trying to make it with a $10/month subscription model.

bhag2066 2 days ago

But hey, we're in a bubble so ¯\_(ツ)_/¯