The Dark Side of Subscriptions: How Big Tech Companies are Exploiting Consumers
In recent years, the rise of subscription-based services has been nothing short of meteoric. From streaming services like Netflix and Disney+ to delivery services like Amazon Prime and Uber Eats, it seems like every company is jumping on the subscription bandwagon. But while subscriptions can be a convenient way to access the products and services we need, they also come with a dark side. In this article, we'll explore how big tech companies are exploiting consumers through subscriptions, tiering, and dark patterns, and what we can do about it.
The Rise of Subscriptions
The subscription model has become increasingly popular in recent years, and for good reason. For consumers, subscriptions offer a convenient way to access the products and services they need without having to make a big upfront investment. For companies, subscriptions provide a predictable revenue stream that can help them grow and scale their business.
However, the rise of subscriptions has also led to a number of problems. One of the biggest issues is that consumers are often locked into subscriptions that they don't need or want. Companies use a variety of tactics to keep consumers subscribed, including tiering, dark patterns, and other manipulative techniques.
Tiering and In-fication
One of the most common tactics used by big tech companies is tiering. Tiering involves splitting a service up into multiple tiers, each with a different price point and set of features. On the surface, this might seem like a good thing, as it allows consumers to choose the level of service that best fits their needs and budget. However, in practice, tiering is often used to charge consumers more for the same service.
For example, let's take a look at Uber. When Uber first launched, it was a revolutionary service that offered a cheaper, more convenient alternative to traditional taxis. However, as Uber grew and became the dominant player in the market, it began to focus more on its drivers than its users. By offering sign-on bonuses, cashback on fuel, and other incentives, Uber was able to build a loyal base of drivers who were willing to work for less than they would have earned with traditional taxi companies.
At the same time, Uber began to introduce tiered pricing, with different levels of service at different price points. While this might seem like a good thing, in practice, it meant that users who didn't want to pay more for a higher level of service were left with longer wait times and lower-quality cars. In other words, Uber was using tiering to charge users more for the same service.
This is just one example of how big tech companies are using tiering to in-fy their services. In-fication is a term coined by Corey Drro to describe the process by which companies start out by offering a great service at a low price, but then gradually increase the price while reducing the quality of the service. This is often done in order to extract more money from consumers while still keeping them locked into the service.
Dark Patterns
Another tactic used by big tech companies to keep consumers subscribed is dark patterns. Dark patterns are manipulative techniques that are designed to trick or deceive consumers into doing something they don't want to do. For example, a company might make it difficult to cancel a subscription, or they might use confusing language to make it seem like a subscription is required when it's not.
One of the most common dark patterns used by big tech companies is the manipulation of the default option. For example, when you sign up for a service like Amazon Prime, the default option is often to renew your subscription automatically. This means that if you forget to cancel your subscription, you'll be charged for another year of service.
Another common dark pattern is the use of confusing website design. Companies will often make it difficult to find the cancel button, or they'll use language that makes it seem like canceling is a bad idea. For example, they might say something like "Are you sure you want to miss out on all the great benefits of our service?"
What Can We Do About It?
So, what can we do about the dark side of subscriptions? One solution is to be more mindful of the subscriptions we sign up for. Before subscribing to a service, ask yourself if you really need it, and if you do, make sure you understand the terms and conditions of the subscription.
Another solution is to push for policy changes that make it easier for consumers to switch between platforms. For example, social media platforms should allow users to contact their friends without having to be active on the platform, and search engines should prioritize the most helpful reviews, not just the ones that benefit the platform.
Finally, we can support companies that are doing subscriptions right. Companies like Surfshark VPN offer a great service at a fair price, without resorting to tiering or dark patterns. By supporting these companies, we can send a message to big tech companies that we won't stand for exploitative subscription practices.
Conclusion
In conclusion, the rise of subscriptions has brought with it a dark side that we can't ignore. Big tech companies are using tiering, in-fication, and dark patterns to exploit consumers and extract more money from them. However, by being more mindful of the subscriptions we sign up for, pushing for policy changes, and supporting companies that are doing subscriptions right, we can fight back against these exploitative practices and protect ourselves from the dark side of subscriptions.
Highlights
- The rise of subscriptions has led to a number of problems, including tiering, dark patterns, and other manipulative techniques.
- Tiering is often used to charge consumers more for the same service, while in-fication is the process by which companies gradually increase the price while reducing the quality of the service.
- Dark patterns are manipulative techniques that are designed to trick or deceive consumers into doing something they don't want to do.
- To fight back against the dark side of subscriptions, we can be more mindful of the subscriptions we sign up for, push for policy changes, and support companies that are doing subscriptions right.
FAQ
Q: What are subscriptions?
A: Subscriptions are a way for consumers to access products and services on a recurring basis, usually for a monthly or annual fee.
Q: What is tiering?
A: Tiering is the process of splitting a service up into multiple tiers, each with a different price point and set of features.
Q: What is in-fication?
A: In-fication is the process by which companies start out by offering a great service at a low price, but then gradually increase the price while reducing the quality of the service.
Q: What are dark patterns?
A: Dark patterns are manipulative techniques that are designed to trick or deceive consumers into doing something they don't want to do.
Q: How can we fight back against the dark side of subscriptions?
A: We can be more mindful of the subscriptions we sign up for, push for policy changes, and support companies that are doing subscriptions right.
