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One of the Blendle founders described this as cyclical in nature. People get bored with paying for a lot of content they don't need, so they switch to a pay-per-item service. Then they get bored of the nickel-and-dime experience (and perhaps pay more than they anticipated), so they get interested in an all-you-can-eat model again. He pointed at cable TV as an example, continually bundling and unbundling popular content to either persuade people to pay for a bundle or to pay for pay-per-view.

I'm waiting for a smart content provider that has a 'never pay more' model. Stream a movie for 6 bucks, but since the all-you-can-eat bundle price point is 30 bucks, once you watch 5 movies, the rest are free for the remainder of the month.



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