You simply need to price the flat-rate sub at a price that's profitable when averaged out over all of your users, both light and heavy, and prevent fully automated usage by the power users. That's it. This is immensely more user-friendly, and I doubt you'd get any traction at all if you didn't do this. Even if you pay more for the sub, having unlimited (non-automated) usage frees a mental barrier to using the product. If you have to pay for every request you make, it introduces a hesitation to do anything - it makes the user hesitant to experiment, hesitant to prompt for anything of slightly less significance, anxious about the exact token consumption of every prompt, and so on. It's not enjoyable to use when you're being penny pinched for every prompt.
Anthropic's problem, of course, is that they are not bootstrapped. They don't have a business model that can compete with startups running DeepSeek or GLM on their own hardware. Non-frontier startups got to skip the whole "tens of billions of dollars in debt" step of creating a frontier model from scratch, and still get to run a model that is perhaps 80%-85% as good as Anthropic's, which is good enough for millions of customers. So Anthropic is desperate, backed into a corner, and doing anything and everything they can to try to right their sinking ship, no matter how scummy.
But being a power user and fully automating things is the whole appeal.
this is a non-starter
Mind sharing a link?
And given that Anthropic does both, it must make up its training costs by selling inference. jp57 was pretty clearly talking about Anthropic's flat-rate plans, rather than the flat-rate plans of companies that get to skip the most expensive part of the process.
That seems likely. If people had to pay their share of the actual all-in cost of the service (rather than having it be subsidized by investors with extremely deep pockets and a small handful of corporate customers), very, very few regular people would use it.
The point that 'jp57' pretty explicitly made [0] is that flat-rate plans that don't cover the all-in cost of providing the plans tend to result in those plans getting worse and worse and worse, as economic realities assert themselves. If the flat-rate plans that you are aware of actually cover the cost of providing the service, then you're discussing an entirely different situation that's entirely inapplicable to the discussion about Anthropic's pricing and degrading level of service.
[0] ...which is one that's understood by people who have been in pretty much any industry for more than a few years...
You misdirected my quoted statement to assert a position I did not take. When I talk about flat-rate subs being a good UX, I am not talking about at a subsidized rate. My position is that people will pay more for a flat-rate sub than they are willing to through per-token billing. That is, a consumer who would only pay average $10/mo if they used the API will voluntarily pay $20/mo for a sub, because even though it's a worse value the latter is a tremendously more friendly user experience. When I say that flat-rate subs are necessary for traction, I mean that solely from a user experience perspective, not "subsidized usage is necessary for traction".
Nope. You're reading way too much into what I'm saying, rather than reading the words I'm writing.
> When I say that flat-rate subs are necessary for traction, I mean that solely from a user experience perspective, not "subsidized usage is necessary for traction".
Sure. I never claimed that you said "subsidized usage is necessary for traction". It's "just" that your broader point is not relevant to the topic under discussion, which is Anthropic's financial situation. That's why I said
If the flat-rate plans that you are aware of actually cover the cost of providing the service, then you're discussing an entirely different situation that's entirely inapplicable to the discussion about Anthropic's pricing and degrading level of service.