Gyms get you by making memberships cheap and easy, and cancellations incredibly difficult.

The flip side of that is that only a small fraction of their members could actively use their memberships or they wouldn't have enough space. The active members get their membership effectively subsidized by people who don't use their memberships.

Apparently up to 50% of a gym's sign-ups happen in the month of January due to new years resolutions, and January/February are the busiest months as a result, though the majority keep their membership even after their resolve to go tapers off.

Gym memberships are also a thing people think they should have more than they actually desire to use them. So many people want to be healthy and get in shape, but aren't committed to actually doing the work. So when it comes time to think about cancelling plenty of people keep the gym membership because they think theyshould use it but then don't make the time.

Whereas Netflix and other streaming? It's so easy to just stay in and binge watch. The logical thing to do is cancel when you aren't using it to avoid paying year round, but they bank on the combination of laziness (takes effort to cancel) and ease of use - if you watch even just once or twice a month it starts seeming worthwhile.

And I'd bet most users still make them money. There's a huge fixed cost to setting up a giant content streaming service like Netflix, and to acquiring their content catalog, but they've hyper optimized the distribution so I'd expect all but the heaviest users make them money. And with ad supported plans, watching more would mean they get to serve more ads and make even more money.

> Gyms get you by making memberships cheap and easy, and cancellations incredibly difficult.

I think that depends on your country. I’ve never had an issue cancelling my gym membership.

In Europe it's law to make cancellations as easy as signing up. Also using the same methods; so if you can sign up through the web it's not allowed to only offer cancellation by registered mail that must arrive on a full moon only.

It seems insane to me that this isnt the law everywhere.

It is more insane to me that we need a law for this.

I'd say about a good 25% at least of the global SaaS revenue is dormant "gym" accounts by now.

that's called car rentals :)

With the advent of various car renting apps, I was so excited about not owning a car, and basically using just-in-time renting option. Turns out, at least in my part of the world ([0]), that it's such a PITA.

When you plan ahead, it's manageable. Sometimes, a car for renting is not available long term because people plan for the same time (e.g. holidays) and the provider doesn't have big enough car fleet to cover these peaks.

When you have an unexpected trip though, e.g. suddenly needing to go to Ikea, a spur-of-the-moment trip, etc., that's when this all falls apart. In my town, this was then 40:60, favoring no cars being available.

In the end, I just bought a car. 5 days out of the week, it sits on the street and depreciates in value. We take it on trips for the weekends, though, and have been absolutely loving it.

[0] central Europe, don't really need a car for daily life, but it's nice to have sometimes

I live the rental only life and only when needed. That being said when I looked at buying a car, it would be cheaper if bought second hand as it basically doesn't depreciate unless you drive commercially. The key is getting something that is already old and with a lot of mileage. Adding 10% more mileage to a car with 100k+ miles and adding 3 or 4 years to a 15 year old car doesn't really depreciate, it's all the same value. So if you ride the wave of old second hand cars you can switch every few years and you can even sell them for higher than you got them in years where the second hand market moves up.

Yes but I want the car in front of my home :) I understand the concept that I pay also for the luxury to drive around whenever I want etc. It was more a musing ala eat the cake and have it :)

I see lots of short rentals that just idle on the street for days sometimes. Here the provider pays of course (and I assume it’s not in their interest).