| Is a cup of coffee at Starbucks really $10+ these days? I know that place is expensive, but has it gotten that expensive without me noticing? The thing I would primarily challenge is the assertion that this is fundamentally irrational behavior. Software is a means to an end. People don't spend money to acquire software, they spend money to solve a particular problem. There are two things that come to mind about subscriptions vs. the standalone pricing models of the recent past: 1) Before I'm willing to pay, you need to prove to me that your software will solve my problem. That proof doesn't come by installing the software, it comes after I've used it long enough to see if it does what I need it to do. Time or feature-limited trials attempted to solve this, but in a time-limited trial, I might solve my problem within the time period and never need to buy it (think unzipping a file). Or in a feature limited trial, I might get the general sense that the thing will work for me, but the software now holds my problem hostage, and I think there's a psychological component to why that feels "bad". 2) Sufficiently advanced software will be proportionally expensive, and out of reach for the average person. For this, I think about apps meant for writers, media and content creation, password management apps, etc. Apps that provide tremendous value, and therefore could command a high price, but now the average user is priced out. Subscriptions provide two things: 1) A feeling of safety coming from the fact that I can both use all aspects of the software, but also choose to just cancel the thing if it doesn't work or me. 2) The ability to spread out the cost over time. Maybe I can't afford $1,000 for <media creation software of choice>, but I can afford $20/month right now. You might argue that someone good with their finances should realize that they will eventually pay $1,000 either way, and eventually more, and they should just drop $1,000 now, but that is also a somewhat privileged position that most of us in the SW industry get to enjoy. It's also rational to opt for a solution that is lower risk, i.e. spending $1,000 for something that might not solve my problem could be considered irrational. I generally agree that people continue to struggle with the idea of paying for software. But I don't think that's fundamentally the problem. What people really want is a service that just handles their problems for them, and the software is just a means through which they interact with that service. The fact that people are willing to pay for services at least tells us that people are willing to pay for something. This is a hint that the model might be the problem, not the fact that money is involved. And I think this is what has ultimately led to the change in licensing models for apps like 1Password. I think that we as a development community need to accept the maybe uncomfortable truth that continuing to try to sell software in the traditional ways is itself irrational. It's the ultimate "the user is using it wrong". This is not a phenomenon that is unique to software either. Just look at the popularity of low-friction installment plans for purchases of many physical products. It's common across most major retailers to either plop down your $1,000 now, or sign up for monthly payments to spread it out over time. |