Life on the Wicked Stage: Act 3<p><strong>Apple TV+ Price Increase and the Dummy Price</strong></p><p>Times have changed how money changes hands. Back in the day purchasing a subscription meant you got a deal. It also created a relationship between the customer and the service, that often, but not always, protected subscribers from price increases. At least for a time. That really no longer exists. Sure there are deals and free trials to seduce new customers, but typically those deals are for a period of time and then the price goes up. It’s changed the definition of what we used to call “the dummy price.”</p><p></p><p>“The dummy price” was for those who didn’t subscribe, thus paying full price. We used to joke in the theatre biz that “the dummy price” was for the guy who’s wife told him she wanted to see a show, and then he’d have his secretary use his credit card to buy the tickets when he got to the office.</p><p>When we had to raise prices we’d do so on single tickets and reward our subscribers by telling them we’d keep their current prices intact, thus increasing their savings and further building trust in relationship. That made it a bit easier sell when we inevitably had to raise subscription prices.</p><p>It was similar to buying the newspaper each day, instead of subscribing. A subscription was always cheaper than the newsstand price.</p><p>The only thing I think I subscribe to these days that actually offers any type of real savings is an E-ZPass, which in my state cuts the cost you pay at the toll booth by 50%.</p><p>Of course those are different markets than streaming entertainment, which didn’t exist when I was setting “dummy prices.” Subscriptions for streaming entertainment only gets you access. Certainly a lot of content is available for the price you pay, but realistically it’s more than anyone could ever consume. But the promise is access. The quantity makes much of the content as disposable as it is available, even if it is cheaper than back in the day when you had to purchase physical or digital media in order to view it at home.</p><p>The only thing you’re really buying is the inevitable price increase and a bit more frustration in balancing out your entertainment budget.</p><p>The new definition of “the dummy price” is hoping there are enough customers who don’t pay attention and miss the price increase.</p><p>Apple announced today it’s increasing its monthly subscription price for its streaming entertainment service, Apple TV+ from $9.99 to $12.99 a month. Other streaming services do the same thing, more frequently than Apple. But every player in the market affects the perception of all the rest.</p><p>It’s led to a sort of comedic game for consumers who want to stream from different services. They cancel a service for a period of time, often waiting for new content to become abundantly available or a particularly desired title, and then they’ll resubscribe after canceling another service. Or they’ll just keep creating new email accounts, resubscribing under a new name.</p><p>Currently the streaming companies seem to be comfortable enough with this type of customer churn, but it builds more attraction to titles than it does to a service’s brand, which in turn drives up the marketing costs for each new title. I imagine at some point streaming companies will find a way to clamp down and try to minimize that churn, the same way they have done with password sharing.</p><p>But the subscription game is not just an entertainment industry business practice. There are quite a few services that want your monthly tithe and offer the same kind of price inducements. But it’s certainly easier to cancel Netflix for a period of time than it is some of these other types of services once the inevitable price increase comes along. It will be interesting to see how the AI market shakes out once the first big company needs to break the $20 a month barrier for general consumers.</p><p>Bottom line it’s a shell game for both customers and companies. Death and taxes used to be the only constants in that old axiom about the only things certain in life. That needs to be amended to include price increases for subscription services.</p><p><em>You can also find more of my writings on a variety of topics on Medium at <a href="https://medium.com/@WarnerCrocker" rel="nofollow noopener" target="_blank">this link</a>, including in the publications <a href="https://medium.com/ellemeno" rel="nofollow noopener" target="_blank">Ellemeno</a> and <a href="https://medium.com/rome-magazine" rel="nofollow noopener" target="_blank">Rome.</a></em> <em>I can also be found on social media under my name as above. </em></p><p><a rel="nofollow noopener" class="hashtag u-tag u-category" href="https://warnercrocker.com/tag/ai/" target="_blank">#ai</a> <a rel="nofollow noopener" class="hashtag u-tag u-category" href="https://warnercrocker.com/tag/apple/" target="_blank">#Apple</a> <a rel="nofollow noopener" class="hashtag u-tag u-category" href="https://warnercrocker.com/tag/appletv/" target="_blank">#AppleTV_</a> <a rel="nofollow noopener" class="hashtag u-tag u-category" href="https://warnercrocker.com/tag/culture/" target="_blank">#Culture</a> <a rel="nofollow noopener" class="hashtag u-tag u-category" href="https://warnercrocker.com/tag/entertainment/" target="_blank">#entertainment</a> <a rel="nofollow noopener" class="hashtag u-tag u-category" href="https://warnercrocker.com/tag/news/" target="_blank">#news</a> <a rel="nofollow noopener" class="hashtag u-tag u-category" href="https://warnercrocker.com/tag/streaming/" target="_blank">#Streaming</a> <a rel="nofollow noopener" class="hashtag u-tag u-category" href="https://warnercrocker.com/tag/subscriptions/" target="_blank">#Subscriptions</a> <a rel="nofollow noopener" class="hashtag u-tag u-category" href="https://warnercrocker.com/tag/technology/" target="_blank">#technology</a> <a rel="nofollow noopener" class="hashtag u-tag u-category" href="https://warnercrocker.com/tag/tv/" target="_blank">#TV</a></p>