The problem is not the pricing break for a longer contract, but that the yearly contract was promoted as a monthly price (with no minimum fee clearly shown). I'm sure the A/B testing showed higher takeup if they wrote it that way -- it seems cheaper!
It isn't true that this is the only option. Instead of onerous lock-in like a gym membership they could have a sliding scale -- the longer you pay for it, the cheaper it gets. Their decision to go for annual lock-in is short term thinking.
It isn't true that this is the only option. Instead of onerous lock-in like a gym membership they could have a sliding scale -- the longer you pay for it, the cheaper it gets. Their decision to go for annual lock-in is short term thinking.