Why do so few services offer annual payments?

I'm not a fan of monthly billing and always like to see a service offer annual payments; a positive example would be Playstation Plus.

Now I'm wondering why this is possible for so few services. Why can't I just pay for the entire year with Netflix, Prime, etc.? From a business perspective, this gives me the advantage of long-term customer loyalty. Are there any disadvantages?

(2 votes)
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MonaLisa557
1 year ago

For most Abo models you can choose between mtl, all 3 Moante and 1 year. The disadvantage is that you have to pay very large sums every time and you can’t quit if you have a 3 month or 1 year subscription.

You can only quit as you pay. So at 3 montl. You can only cancel payment every 3 months, etc.

It can’t be everyone. Who has to look hard on the money can stop

1. Don’t raise equal sums 1x a year

Two. You can decide monthly if you can or will.

3. It can also help with saving. Many people don’t use any subscription and can say so, in February I pay only Sky and in March only Netflix” This allows you to switch felxibel between the providers.

SirAndiusNr2
1 year ago

This has some disadvantages for suppliers. For annual payments, customers require a discount. With price increases, you can’t give further to the customer.

This will also be difficult with the monthly termination.

GammaFoto
1 year ago

Are there any disadvantages?

less profit… because you are probably one of the few who prefer to pay annually. To make this a little more attractive, you always have to give a discount, so for example 12 months have come to pay 10 months or something…