(I used to pay $200/mo before they pulled Fable -- I have no desire for the higher subscription tier now.)
- Sunk cost encourages people to perform the verification in order to get access to what they've already purchased. No refunds means they're less likely to take it back and straight to a competitor.
- Also prevents bad actors from pulling out of situations that require the verification. Presumably you deserve to be out of that money if you suspiciously thought you'd be able to spend it without verifying identity.