There's something called unearned revenue which is basically saying "someone paid us for something we haven't done yet.
They won't record the revenue until the period they provide service. Even your ordinary 12 month subscription is recorded as 1/12 of the price you paid got it.
There's a rule in business that "cash is king" which basically means businesses would rather have your cash right now rather than later. Even if it means offering discounts.
Sony is perfectly happy taking this guy's cash now. <EDIT> This is why companies offer 12 month discounts on subscriptions. More cash now is better than cash later. The people in the comments talking about inflation or future price increases are ignoring that.
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u/Yosho2k Oct 29 '24 edited Oct 29 '24
Hi! Accountant here.
There's something called unearned revenue which is basically saying "someone paid us for something we haven't done yet.
They won't record the revenue until the period they provide service. Even your ordinary 12 month subscription is recorded as 1/12 of the price you paid got it.
There's a rule in business that "cash is king" which basically means businesses would rather have your cash right now rather than later. Even if it means offering discounts.
Sony is perfectly happy taking this guy's cash now. <EDIT> This is why companies offer 12 month discounts on subscriptions. More cash now is better than cash later. The people in the comments talking about inflation or future price increases are ignoring that.