[hombre_fatal]

I think the subscription pricing exists because it’s a far more palatable way to bill people for day to day personal use.

I used Claude back when API per token pricing was the only option and it was bad for all the usual reasons pay-per-use sucks compared to flat billing: you’re constantly thinking about cost. Like trying to watch a Netflix video with a ticker in the corner counting up the cents you owe them.

I don’t understand your claim that they want people paying per token - the subscription is the opposite of that, and it also has upsides for them as a business since most people don’t saturate the usage limits, and the business gets to stuff a bunch of value-adds on a bundle offering which is generally a more lucrative and enticing consumer pricing model.

[gbear605]

The bundle only works if it’s +EV for them. A lot of analyses (though not all - it’s complicated) say that the $200/mo bundle (and certainly the $20/mo bundle) costs more than that for most users, and the bundle is currently a loss leader. If so, then eventually prices will need to go up, and API per usage pricing will seem much more attractive.

[zdragnar]

Even if it more expensive, people will prefer subscription pricing over pay per use.

When you ask it to do something and it goes off the rails, the payment plans have wildly different effects:

Subscription- oh well, let's try again with a different prompt

Pay per use- I just wasted money, this product sucks

Even if it is less common than not, it has an outsized impact on how people feel using it.

[dakolli]

I'm not going to say what platform but it's an agentic coding tool, I know for a fact the platform loses in the mid $200.00s on a $20.00 plan. 10:1 loss leader for customer acquisition is crazy, and they'll have to make that up in the future somehow, they're all fumbling on how to vendor lock their customers, and its not necessarily clear they're going to be able to.

I expect some big falls from 10 figure businesses in the next year or two as they realize this is impossible. They've built an industry on the backs of gambling addicts and dopamine feins (I'm generalizing but this is a thing with LLM users (just read vibe coders posts on twitter, they're slot machine users). Ask sports betting operators from back in 2019-2022 how it worked out for them when they tried to give out 1-2k a year to attract new customers, and then realized their customers will switch platforms in an instant they see a new shiny offer. Look up the Fanduel Founders "exit" for an insight into this.

They have to eventually stop catering to the slot machine users, which are generally paying for these hugely lossy flat rate subscriptions, and somehow get them used to a different type of payment model, or cater strictly to enterprise... Which also aren't going to tolerate paying 20k a month in tokens per developer, is my guess.... Lots of delicate pricing problems to figure out for all these companies.

[CuriouslyC]

The cost difference is pretty staggering for the same usage. Being on the sub hacks your reward system to push you to be productive, legitimately hitting limits feels like a win, and you start looking for ways to max your utilization %. A lot of people get quite obsessive about it. The sub is 100% the innovation that makes Claude Code "work."

[mlrtime]

People 100% want subscriptions in this space.

The alternative is AWS where you need to be a billing expert to keep costs locked at $20/month.

[cameronh90]

If the pay-per-use cost predictable enough, it’s less of an issue. That’s how electricity works and it’s fine.

The issue with Claude Code is it’s not at all obvious how any given task or query translates to cost. I was finding some days I spent very little and other days cost a fortune despite what seemed to me to be similar levels of usage.