Quote:
Originally Posted by iamtam
simple math question. $9 a month to $16 a month is a sizable increase, enough that their net income after admin costs more than doubles. they could lose half of their subscribers and still be in as good a position.
with no real competition in the field worth mentioning, they can get away with raising their prices.
|
Yep, I'm sure when they ran the numbers and assumed a worst case scenario of instantly losing 10-15% of subscribers with this increase, their revenue will still jump up and their net profit margin will definitely go up. As Eric said though, I'm sure this is a step to make sure their revenue is where it needs to be with the expected steeper licensing expenses approaching.