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AI Generation Economics

Living document. Council-approved v2 figures (2026-07-31). Sourced figures come from the council-verified rate table in ../technical/ai-generation-strategy.md; planning figures are labelled assumptions. Plain mirror: ../plain/ai-generation-strategy.md.

This doc covers the money side of AI generation: unit economics, per-user tiers, cost at scale, top-up pack margins (WING-300), and the open decisions that move the numbers.

Unit economics (council-verified, post-promo rates)

Unit Marginal cost
Study song (Lyria bed + TTS overlay) ~$0.13–0.17
Study Cast episode (10 min, two-host) ~$0.25–0.45
Narration $0.90–1.80 per audio-hour
Image (Nano Banana 2, interactive) $0.067 ($0.034 batch, queued only)
Project chat turn (50k ctx, realistic caching) ~$0.02–0.03
Resume/cover-letter/doc artifact $0.03–0.08 (Gemini Flash) / $0.10–0.25 (Sonnet)
Mock interview ~$1.50–2.50 per conversation-hour
Grounded research turn ~$0.01–0.035 (SKU disputed — verify)
Diagrams / ambient beds $0 marginal (procedural / CC0; egress ~$0.12/GB is infra)

Per-user tiers (generation only, per month)

Tier Cost Notes
Light ≈ $2.75 occasional use across lanes
Moderate ≈ $14.25 the design center; doubled vs draft v1 once resume, interview, and research lanes were actually modeled — audio was never the expensive part
Heavy, uncapped ≈ $57.70 what an unlimited power user would cost
Heavy, capped (WING-299) ≈ $33.10 caps on songs, episodes, narration, chat turns, interviews

Add ~$2–5/user for sticky IP infrastructure. Chat + mock interviews + PageAgent dominate heavy spend, so caps must cover them — not just the audio lanes.

Cost at scale

Mix assumption: 50/40/10 light/moderate/heavy-capped ⇒ blended generation ≈ $10.45; ~$13.95/user all-in.

Users Variable Fixed infra Total/mo Per-user
100 ~$1.4k ~$0.7k ~$2.1k $21
500 ~$7.0k ~$1.1k ~$8.1k $16
1,000 ~$14.0k ~$1.5k ~$15.5k $15.50
5,000 ~$70k ~$4.5k ~$74.5k $14.90
10,000 ~$140k ~$8k ~$148k $14.80

Sensitivity: switching cloud text from Claude to Gemini-primary cuts blended generation ~25–30% ⇒ 10k users ≈ $110–120k/mo. Held in reserve as a cost lever (decision log, 2026-07-31).

Top-up packs (WING-300) and margins

When a user hits a lane cap, they buy a pack for that lane rather than a bigger plan. Pack pricing targets ~50% margin over marginal cost — e.g. a song pack priced at ~2× the ~$0.15/song cost. Packs turn the heaviest users from a margin threat into revenue: the heavy user becomes a contributor — the ~$58 uncapped cost profile becomes ~$33 of capped cost plus pack purchases at margin, instead of a silent loss on a flat subscription. Meters are always visible; failed generations never consume quota or packs.

Promo-cliff risk

All math above uses post-promo Claude Sonnet 5 rates. The current promo ($2/$10 per M in/out) ends Aug 31, 2026, moving to $3/$15 — a 50% jump on the text lanes. Budgets built on promo rates would have looked ~33% better than reality; do not quote promo-rate economics anywhere.

Open decisions (each moves the numbers)

  1. Lyria indemnity verification — songs lane is blocked until Lyria is confirmed on Google's indemnified-services list; blocks the $0.15/song lane entirely.
  2. Suno replacement — Suno BYOK is dead (no official API). Desktop music BYOK candidates: ElevenLabs Music / Stability Audio, or drop desktop music.
  3. Trademark filing for the character cast (AI images likely uncopyrightable; trademark is the ownership mechanism).
  4. COPPA/minors policy — study features attract under-13s; age gating + data handling need a policy pass before study lanes go wide.