AJ and I were talking about the competition = lower cost thing last night as well.

I suspect that what we will see first is enhanced value (i.e., free MPA3) as a competitive edge. I suspect that neither Epoch nor CCBill want to get into lowering their discount rates because they know it will just lead to a price war where they'll both lose.

Both of them will quietly negotiate on discount rate if a site has the volume to justify it, and I suspect it's always been that way. But I doubt that we'll see any lowering of their listed rates because all that will happen is the other company will immediately match it, and they are probably smart enough to see that.

What I am surprised about is that the off-brand players (other than Verotel) haven't really done much with cutting discount rates. Since they don't really have a lot to offer, you would think they would be inclined to offer a better rate, but I haven't seen much evidence of that. Of course Neova was doing much lower rates, but then that was a janky one-man show that wasn't really operating legally to begin with, so I don't really count them.