Quote:
Originally Posted by emjay
I believe we will witness a shift away from the $29.90 business model to more of a "pay-as-you-go" one.
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If pay-per-go would work the way that user's credit card is on file and every time he clicks on a video he is charged $1, that way it could even work, but on mobile phones where they have to sms every time or confirm the card everytime, it doesn't work, because by the case studies I have read, the percentage of people who would buy a $1 item (e.g. $1 per clip) is around the same as those who would buy a $9.99 recurring membership x 3 month average. So it ends up $1 vs $30, pay-per-go always makes you 30 times less money.
I think StarkReality nailed it best "there are $50 whores and there are $3000 whores and they'll both have happy customers."
From mainstream, Skype has a pay-per-go and an unlimited-usage monthly membership. I will do some testing on adding a pay-per-go option as addition to monthly membership, while making the monthly membership look more attractive to see if it increases or decreases revenue.