{"id":664358,"date":"2025-04-28T00:00:00","date_gmt":"2025-04-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/04\/28\/traditional-monthly-subscriptions-may-be-on-their-way-out\/"},"modified":"2025-04-28T00:00:00","modified_gmt":"2025-04-28T00:00:00","slug":"traditional-monthly-subscriptions-may-be-on-their-way-out","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/04\/28\/traditional-monthly-subscriptions-may-be-on-their-way-out\/","title":{"rendered":"Traditional monthly subscriptions may be on their way out"},"content":{"rendered":"

Are traditional monthly subscription models becoming a thing of the past? That may very <\/strong>well be the case, and we have AI to thank (or blame). <\/strong>According to Business Insider<\/a>, more and more players within the SaaS industry are ditching traditional fixed \u201cper-seat\u201d subscription models in favor of a pay-as-you-go pricing model.<\/p>\n

Pay-as-you-go?<\/strong> This model shifts away from a flat user rate to a consumption-based billing that tracks actual system engagement. Instead of just charging you for using their service, you\u2019ll be charged on how much you use it \u2014 how many tasks you run and which features you access will determine the price tag.<\/p>\n

Why? Software services are computing beasts that cost a pretty penny to run, and a flat <\/strong>monthly rate doesn\u2019t cover it. <\/strong>Feeling the heat (literally<\/a>) is the AI industry. With a slew of advanced models \u2014 such as Grok-3<\/a>, GPT-4o<\/a>, and Claude Sonnet<\/a> \u2014 infiltrating the market with each passing day, AI is no longer just simply responding to queries, it\u2019s dissecting and analysing them through an \u201cinference-time computing\u201d approach \u2014 a process that sees the model break down the user\u2019s request into miniscule \u201cslices,\u201d according to BI.<\/p>\n

Let\u2019s talk numbers. <\/strong>So how much on average does a single query on OpenAI\u2019s most advanced model cost the company? \u201cAround USD 3.5k,\u201d writes Tech Analyst Alistair Barr. OpenAI\u2019s most advanced model uses 1k times more tokens \u2014 units of text that AI models use to understand and process language \u2014 than its no-cost counterpart. So how do you keep up with the costs? For a rising number of tech companies, it\u2019s a simple fix \u2014 ditch the monthly payment models, and charge by activity, whether that be the amount of tokens used, the number of queries run, or just how much time you spend thanking<\/a> your digital best friend.<\/p>\n

Last month, Altman took to X (formerly Twitter) to present the idea to the public. <\/strong>\u201cAn idea<\/a> for paid plans: your [USD 20] plus subscription converts to credits you can use across features like deep research, o1, gpt-4.5, sora, etc. No fixed limits per feature and you choose what you want; if you run out of credits you can buy more. What do you think? good\/bad?\u201d Early adopters of this model \u2014 whether or not inspired by Altman \u2014 are AI company Replit<\/a>, Bolt.New, an AI-Powered web development platform<\/a>, and US cloud services platform<\/a> Vercel.<\/p>\n

The good, the bad\u2026 <\/strong>Should you decide to \u201csubscribe\u201d to a premium AI model sometime in the near-future, you might just have to learn to be a little bit frugal. Soon enough, you\u2019ll be paying for tokens and not full unbridled access to the model \u2014 and these tokens are quick to run out. The good? You can always top up, which is definitely better for the companies than it is for you, but isn\u2019t that the price of innovation? Or is it just a glorified in-app purchase?<\/p>\n

\u2026 and the ugly. <\/strong>You might have to stop thanking your virtual genie to conserve on tokens, which may not bother the average user. But the more paranoid of us expect consequences that are hard to predict\u2026 until the AI models start gaining consciousness<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Players within the SaaS industry are ditching traditional fixed \u201cper-seat\u201d subscription models in favor of a pay-as-you-go pricing model<\/p>\n","protected":false},"author":1,"featured_media":664359,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7215],"tags":[7094,514,633,638,3389],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-664358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-your-commute","tag-ai","tag-consumer-finance","tag-enterprisepm","tag-for-your-commute","tag-silicon-valley","wpautop","entry"],"acf":{"mongo_id":"994bcbec-b4c2-41c8-8e03-3cdf5758b5eb","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/4\/1738.jpg","photo_position":"above","homepage_title":"","full_issue_title":"","related_issue":[664353],"teaser":"Players within the SaaS industry are ditching traditional fixed \u201cper-seat\u201d subscription models in favor of a pay-as-you-go pricing model","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/4\/.a3e3570c-376b-44cc-8628-63f33ea0d52a.mp3"},"yoast_head":"\nTraditional monthly subscriptions may be on their way out - 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Once it learns a\u2026","rel":"","context":"In "FOR YOUR COMMUTE"","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/1\/628.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":659184,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/01\/22\/google-and-microsoft-rethink-ai-pricing-to-win-back-corporate-clients\/","url_meta":{"origin":664358,"position":1},"title":"Google and Microsoft rethink AI pricing to win back corporate clients","author":"enterpriseam admin","date":"22 January 2025","format":false,"excerpt":"Both companies had high hopes that businesses would pay extra","rel":"","context":"In "FOR YOUR COMMUTE"","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/1\/1586.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":580805,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/19\/demand-in-china-and-europe-is-pushing-up-evs-global-market-share-the-crypto-market-may-be-thawing\/","url_meta":{"origin":664358,"position":2},"title":"Demand in China and Europe is pushing up EVs\u2019 global market share + The crypto market may be thawing","author":"enterpriseam admin","date":"19 January 2023","format":false,"excerpt":"EVs are getting a bigger slice of the market share pie, thanks to China + Europe: Out of the c.80.6 mn cars sold worldwide last year, electric vehicles accounted for 10%, marking a \u201cmilestone\u201d for EVs\u2019 market share, the Wall Street Journal reports, citing industry data. 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