For example, I've used Adobe products for a very long time, and they get a lot of flack. I was an extensive user of Photoshop (PS) and Lightroom (LR) for a long time.
However, the old model was - PS pay $600 once, then $200 for updates every 2 years or so. LR was $200/100 as I recall. So your run-rate for both was over $150/year (factoring in the initial $800). This was in like year 2000 dollars.
For $150 2023 dollars.. I get constant feature updates, cloud storage & sync, licensed to run on at least 2 machines, etc. Inflation adjusted this is nearly half the price of paying $150 in 2000.
I'm also intrigued by how many very wealthy people are unwilling to pay $10/mo to stream music/video and/or share passwords, when I recall paying $20/CD at the record store in 1998 dollars. You can listen to basically every song you want for the year for the price of (inflation adjusted) 2.5 CDs purchased by my mallrat teenage self back then.
I think we are all just very spoiled..
If I'm buying a subscription, it's an obligation. I'll have to spend money from now until I die or I'll get reduced QoL.
Even if today I have spare $200/month, that might not be the case tomorrow. Maybe I'll get fired. Maybe government turn my cash into paper. Maybe I'll have to pay everything I have to doctors to save my live or health. I'll still have bought songs, but I'll no longer have access to the streaming service.
Content constantly changed delivery mechanisms and people had to buy new media/devices every 5-10 years VHS/Betamax -> Laserdisc -> DVD -> Bluray / HD-DVD -> Bluray 4K Vinyl -> 8 track -> Cassette -> CD
For many things there are cheap/free alternatives or you can opt for the fixed cost up front version.
Paper books/eBooks/CDs/DVDs/MP3s can still be purchased outright. Streaming services have ad supported free tiers. You can go to the library, turn on the radio or tune into over the air TV signal. You can buy an old version of photoshop/lightroom put it on an old computer, and don't expect updates. Etc.
For sufficiently valuable software, people will hold back on an older OS to keep using the software.
A lot of high-end film scanners will come with the 68k or PowerPC mac that’s used to run the software, because the alternative would be spending $20-30k for a new one. And industrial systems run on similar models.
When Boxed software dies, you run it on your emulator and your files can be read.
> Content constantly changed delivery mechanisms and people had to buy new media/devices every 5-10 years VHS/Betamax -> Laserdisc -> DVD -> Bluray / HD-DVD -> Bluray 4K Vinyl -> 8 track -> Cassette -> CD
You can still find VHS players. You can't get data from SaaS app that died yesterday
I'd be surprised if many SaaS products from today will still be available in 28 years time.
I'd assume that many 32bit programs from Win95 era still work natively on Windows 11, and for the rest (including 16bit and DOS programs) you can use compatibility layers (e.g. Wine) and emulators.
You should hang around more in retro-gaming and retro-computing communities. They invest a lot of time, blood, sweat and tears to get to run some old software on modern devices, or preserve old computing/games devices that is able to run this software.
Then I'm sorry you didn't play SimCity 2000 (-:
I don't think you have tried too much to run it.
Because everything is a recurring automatic charge to my credit card, and one more thing to try and keep track of and continually reevaluate if it's still valuable enough to me to continue paying for it.
When you bought a CD you didn't have to from that point forward continue to think about if you want to continue paying money to have access to the CD.
Subscriptions, on the other hand, match how consuming media feels to me - I spent time doing something I liked and the cost enabled that.
Looking on it from a pure economics point of view, clearly it makes more sense to buy a CD and have access to it forever from that spend. But psychologically it feels very different
I think when it was $10 or $15 a month for Netflix, and you got everything, that people did pay. The problem now is that it’s $20 a month for Netflix, and $20 for Hulu, and $25 for Disney plus, and $20 for HBO (ahem, “Max!”), and $15 for Amazon, etc. Fragmentation has meant we’re back to a cable bill worth of cost on top of the actual internet (and possibly actual cable), and half the time you still can’t watch the thing you want to watch (some seasons not currently in rotation etc).
(Also, the cable model was driven by bundling, you may not watch a bunch of discovery channel or scifi channel personally but you're paying for them regardless. Most people didn't buy that many optional extras, maybe an extra movie channel or sports or something, but, most people were never racking up $100 of ala carte services either. A lot of people would have spent a lot less on cable tv if they were allowed to unbundle.)
Anyway the “piracy is an availability problem” line isn’t always true. A lot of times it’s a price problem too. Even if Super Netflix came out with actually everything on it for $99 a month I don’t think you’d get a lot of takers. There is a number where it’s worth my time to pirate even if it’s available, it’s not like Best Buy didn’t carry music or movies pre-iTunes/Netflix, and you could always buy esoteric bands on the web etc. Netflix solved availability for $10/month and that last part can’t be severed while retaining the truth of the insight.
You might say it’s not just steam that ended piracy, but steam sales, and as they’ve slowed down so has my proclivity to spend. I’ll buy any old crap at $5 or $10 if it looks fun, and throw it on the backlog, but for $30 or $40 it has to be something I’m specifically interested in playing in the near future.
This summer sale was the first time prices have been decent in a long while, for the last 5 years the discounts have been meager and the base prices remained pretty high. 75% off a game you're still trying to get $60 for 3-5 years after launch isn't exactly the deep discount it's presented as. Konami and Capcom are awful about this.
Isn't the line "piracy is a service problem"? That covers availability price, and even user experience (sometimes piracy is an even better experience than paying, like in games that use Denuvo)
Google is infamous for shutting down services. And the same thing regularly happens even to large companies when they get acquired by even larger companies who then shut down their existing services and try to force migrate everyone to the parent's offering.
Conversely, stalwarts like Oracle and IBM will often continue providing a service indefinitely. For a price. Because once you're locked in they're happy to keep taking your money. All of your money. Forever. This is... differently terrible?
> the old model was - PS pay $600 once, then $200 for updates every 2 years or so.
But many people would just keep using the original version indefinitely. Paying $800 once is a lot less than paying $150/year until you die. It also lets you choose whether you want to pay more for the new features or save money because you don't need them.
And you can't use the Consumer Price Index for software because software inflation is negative. As more people get computers over time the size of the market increases but the fixed cost of developing the software is the same, so the amortized unit cost goes down and in a competitive market that gets passed on to the customer. In the 90s people paid money for Unix and zip utilities and web browsers and now they're all free because they have such a big market that the unit cost is effectively zero.
SaaS things remain not because they don't follow the same cost structure but because lock-in through proprietary formats and training costs and migration costs keep people stuck on the thing they started with, which in turn keeps competitors from achieving the scale needed to get prices down.
The way around that was to change file format so if you're in industry using that file format (say .PSD Photoshop files), at some point you won't be able to open files from your clients...
The thing is those startups sometimes make very useful software while they're around. I ran Sparrow (an email client from > 10 years ago) for years after the company that made it was shuttered and acquired by Google. If Sparrow was a SaaS product it would be gone 30 days after the acquisition was announced.
> SaaS from established firms seems to be more durable & maintained.
I'm sure many other users have noticed this too. I wonder if it makes breaking into the software space as an upstart firm harder than "in the old days".
I'm willing to pay $10/mo to play music but that gets me access to near-all music I want access to, on all devices I use. A CD can be just in one place at once and needs a specific player. So it's a terrible comparison.
We buy thousands of items and for most people it’s impossible to know how much something “should” cost. So we anchor our expectations to what we know.
Web software was mostly free for years because it was either ad-supported or a speculative venture capital investment. Or a dev releasing it for free thinking that “if we get lots of users we can raise money and figure out monetization later”. The Social Network came out in 2009 and there’s a scene where Zuckerberg was made to look like a genius for rejecting monetization. People who wanted to be like Zuckerberg made stuff for free then hoped to raise money. Finally add in many developers made software for free for personal or ideological reasons.
The end result is that consumers are psychologically anchored to expect that web software “should” be free, an app “should” cost $1 at most, etc It’s not really about the $10 as much as people don’t like feeling ripped off and paying $10 for something that should cost nothing makes them feel ripped off.
An experience is burned into my brain when a friend who was an aspiring yoga teacher was doing a Twitch stream for 10k viewers as part of an online festival but at the last moment needed to stream to Twitch from his iPhone. There was an app that worked perfectly that cost $15 but he almost sabotaged his whole show frantically searching the App Store for a free alternative because $15 was a ripoff. He caved eventually and unhappily, then to celebrate the stream led friends and family to a sushi restaurant that was $200/person . It was never about his inability to afford $15 but his psychological feeling that a $15 app is a ripoff. But fancy sushi “should” be expensive so $200 is a fair price.
We are very slowly seeing this change as interest rates rise and everyone understands software monetization better but it’s a gradual process. For whatever reason it’s often devs themselves who push back the hardest against monetization, in their warped world view someone charging $10/mo for a SaaS is deeply unethical but going to work for some FAANG company and fighting hard to maximize TC is completely fine and in fact encouraged. That way your boss worries about monetization and you are free of any moral qualms about it. FAANG devs complaining about subscriptions, privacy , and paywalls are quite common and similar to vegetarians who only eat beef and pork but avoid eating cows or pigs.
It deliberately changes in the interests of the business at the expense of the customer.
Updates are forced, cannot be backed out, lock in the customer, degrade privacy, remove features, upsell, and more.
There needs to be a way to attract willing customers and maintain a respectful trustworthy relationship. Saas doesn't seem to do it.
coughPantonecough