In today's consumer-driven world, companies are constantly seeking ways to increase their revenue. One approach that has gained traction is the addition of service fees to services that were once at no additional charge to the consumer. While this might seem like a beneficial move for businesses, it often raises concerns among users and can have negative implications such as a loss of trust, user abandonment, competitive disadvantages, and negative publicity.

One case that illustrates this trend is the recent development in the live captioning industry. EEG Enterprises, the leading manufacturer of closed captioning encoders and the creator of the iCap Cloud Network software was acquired by AI Media Technologies in 2021. Subsequently, AI Media Technologies has announced its intention to impose fees for accessing the EEG encoders through the iCap Network, which many agencies, including Aberdeen, have endorsed for more than two decades.

Beginning November 1, 2023, AI Media Technologies will institute a fee for accessing the iCap Network. This change necessitates all agencies, including Aberdeen, to agree to the new terms and conditions, which state that "If you reject the new iCap Terms, your ability to access the iCap Network will cease from October 1st, 2023." (now pushed out to November 1st, 2023). Many agencies express concerns about this new fee, asserting that it will inflate their operational costs and potentially hinder their ability to offer cost-effective captioning services to their clientele. Conversely, AI Media Technologies justifies the fee, citing the growing demands for data protection, privacy, security enhancements, and the need for a robust and stable network. They emphasize their commitment to investing significant capital and resources into the iCap network.

Read the full iCap Network Access Agreement here.

How the new fee will impact the captioning industry and whether it could lead to higher prices for consumers remains to be seen. However, it is clear that clients, who in most cases own the already high-cost encoders, will bear the brunt of the additional costs. Thus, while introducing service fees for existing services can provide short-term financial gains, companies should carefully consider the potential consequences before implementing such changes. Prioritizing customer satisfaction and the perceived value of services should always be a top priority when adjusting pricing structures.