Premium users subsidizing land owners with new pricing
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Peter Stindberg
I am a Premium member since forever. The Lab just dropped a whopping 21.1% price increase on me, without adding additional value.
My landlady (and close friend) is Premium since forever. The Lab just dropped a 14% price increase on her, but since she owns the land, the Lab also granted her a 13% reduction on land costs, which will save her several hundred US$ per year.
This new pricing seems to me to be a redistributing from residents to landowners. We regular Premium residents pay more, and the landowners pay significantly less. We non-land-holding residents subsidize the land barons.
This is hardly fair.
I understand costs are rising across the board. I understand the Lab's costs are rising as well. Had the Lab argued "everythign gets more expensive" and raised the prices - SLIGHTLY - for ALL, I would have understood.
But a 21.1% price increase for Premium residents, paired with a 14% subsidy of landowners - in percentages this seems harmless, in absolute US$ amounts it's massive - sends the wrong message.
I ask the Lab to reconsider, and restore fairness.
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Alisa Drachnyd
I cannot even begin to fathom why LL thinks that Premium members should have to pay extra (a 20% increase to annual billing in my case) to subsidize cheaper regions for the big boys.
It is especially insulting considering that not only do we receive absolutely nothing (no one cares about the free gifts) in return for this price hike, but you have neglected mainland owners for so many years as if we are redheaded stepchildren compared to your pampered region owners.
You want to disrespect us? Fine. For the first time in over a decade, I am dropping my Premium annual and going full free mode. This will also mean selling the mainland I have owned for the majority of that time, which in turn means I'm reclaiming both my subscription fees as well as my mainland tier fees.
Here's hoping that the others are willing to walk their talk when they say they will be doing the same, and that your region owners can take up the extra slack after the lost revenue. As for me, I'll be cashing out after the sale and treating SL the same as any other neglected F2P game out there by logging in rarely and spending never.
I get that investment groups like to slash and burn for a quick profit and even faster escape, but at least your peers are a little more elegant with their dirty work -- all of this is just plain sloppy.
Without Ordinary
Did the increase amount change since the first announcement? Only just hearing about this now and from the official post it looks like the Premium plan increases are just a decrease in the annual plan savings. Premium Plus annual is going up $3.24/m. That is "only" 15.6%, which isn't super bad, though it is less painful that over 20%.
A friend does own a region, so I could make up the difference by poking them for a cut of what their saving. :V
Timothy McGregor
There are many who own private regions who are not land barons/landlords. I own two regions, one of which is dedicated to providing a free service to the resident community. I welcome the moderate decrease, which for me amounts to $10/month since one of my regions is grandfathered already.
I do agree that the Premium increase is a dramatic jump when you view it as a percentage. But in actual dollar figures you're talking about $1.74 per month. Still pretty moderate compared to what most software subscriptions are like these days. And that dollar seventy four is not even remotely fully subsidizing the region price decrease. The total increase in premium subscription costs across all products is $6.98. The total decrease in region pricing across all products is $64.00.
So no, the premium account subscription price increases are not subsidizing the price drops on private regions. Linden Lab is.
Timothy McGregor
I know this is a little absolutist. But neither of us can conclude that premium members are or are not subsidizing private region owners because we can't see the accounting ledgers that show what this really looks like. It only feels like that to you because all you see is the blog post. But you do have the percentage vs dollar optics backwards.
jessica111 Clary
Timothy McGregor I understand what you’re saying, and I do agree that not every private region owner is a “land baron” or landlord. Some people own regions for community projects, events, art, education, or free services, and I respect that.
But I think the bigger concern people have is not just “oh, it’s only a couple dollars more per month.” The issue is the overall direction of the economy. Linden Lab lowered some region costs while raising certain membership costs, and even if we do not know the exact number of Premium users, cancellations, active regions, or total revenue impact, that is exactly why none of us can fully prove whether it is or is not being offset somewhere else.
Also, the percentage matters because creators and consumers are not separate worlds in Second Life. A lot of serious creators use paid memberships because they upload, test, fix bugs, manage products, and try to make sure customers are not disappointed. When their costs go up, many creators are not just going to absorb that forever. Some of that cost will eventually get passed into product prices, upload behavior, rentals, services, or marketplace pricing.
So even if the Premium increase looks small on paper, residents can still feel it later through the economy. Second Life runs on a connected creator/consumer system. If Linden Lab raises the cost on one side, it can ripple into the other side.
That is my main point. It is not just about my bill being a few dollars higher. It is about the long-term effect on creators, buyers, renters, and the SL economy as a whole. A land discount sounds good, but if the cost gets pushed somewhere else, residents are still paying for it in the end.
0cienne Resident
Due to the high cost newbies or even 10 yearers cant afford our own land. Ah well. Go ahead SL price it all into people leaving.
Shaharazad Humphreys
It's clearly a ploy to phase out stipends by forcing current Premium users to switch to Premium Plus with no stipend. Can't say I didn't see this one coming back when the whole Premium Plus option was introduced. I think it's the lack of transparency that irks me the most. I mean, if LL is getting rid of stipends just say that—that would give us the opportunity to review our budgets and decide if we still want to stay. At this point, I'm not sure I will be staying. But I'm also really not sure they care.
jessica111 Clary
why dent this get sent in Email as a Featured thing to be voted on hm.........
Timothy McGregor
jessica111 Clary Maybe because Linden Lab isn't a democracy and customers don't typically get to "vote" on corporate revenue strategies.
Irishk9 Aeon
I think you,ll find its the right message to those it was intended to be for. At this point the lab have very much decided who their target customers are & are not!
Yman Juran
Yes, as owner of app 3000 sqm my annual Premium subscription got raised from $99 to 119.88 and am now also wondering if it is time after 19 years to let go of my land, a beautiful peninsula... undisturbed in Caldbeck region. any one interested..IM Yman Juran
Monroe Ghost
I described it as ‘robbing Peter to pay Paul’ I won’t be renewing my premium account when it’s due for all the reasons you have set out. If LL won’t look after the little people , who are just as much keeping SL going , then I can find something else to spend my $100 on .
Ikaros Alpha
I'm really happy I moved to "Premium Plus No Stipend". In the first place because they deducted exactly the weekly stipend from the year price so it's $100 cheaper than Premium Plus was, so far. Also now Premium Plus No Stipend is unaffected by the raise in price. I will still cast my vote for the unhappy masses though.
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