We’ve decided to make less money [Part 2]

PostHog has significantly reduced the cost of session replay and is now introducing a new pricing model for its event tracking, making it up to 80% cheaper for tracking anonymous users. This change is expected to decrease product analytics revenue by about 30% but opens up possibilities for web analytics at scale and tracking high-volume backend events. Previously, all events were charged at the same rate, but the new model differentiates between identified events, related to logged-in users and associated with personal profiles, and anonymous events, which involve non-identifying data. Anonymous events are now cheaper to process because they rely on more efficient ClickHouse tables rather than the more complex Postgres processing required for identified events. This shift allows businesses to save significantly while maintaining flexibility in tracking both anonymous and identified users, encouraging growth through enhanced customer retention and word-of-mouth promotion.

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