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YouTube disallowing adblockers, Reddit charging for API usage, Twitter blocking non-registered users. These events happen almost at the same time. Is this one of the effects of the tech bubble burst?

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[-] WolfhoundRO@lemmy.world 28 points 1 year ago

They were like this before also, but you're right: now they're much more overt and like they're pushed or hurried by something... And that something is the prospect of recession. They're not publicly announcing it, but their liquid assets are running low and they hit the ceiling for growth. YouTube is trying to maximize their exposure and revenue for ads by cracking down on adblockers; Twitter and Musk doing the dumbest decision just for money, the last one for the rate limitation being connected with not paying the bills to Google Cloud; Reddit introducing 3rd party API usage fees for, maybe, the same reason... They ran out of "smart" and covert solutions to milk their product, partners and clients of money and they would rather go down in greed. And they won't even be directly responsible due to those golden parachutes

[-] PizzasDontWearCapes@sh.itjust.works 4 points 1 year ago* (last edited 1 year ago)

In fact almost all companies start off willing to accept low profit margins, or even losses when they get started

They are building a client base that will allow them to reach economies of scale or the ability to raise their prices based on reputation

Social media companies are a special case because they use the general public to provide a large part of their product (content, and access to a marketable audience)

None of these platforms can exist at break-even or better without charging users or leveraging users to charge advertisers

As for the fediverse, I'm grateful that app devs and instance hosters are doing what they do for free, but wouldn't begrudge them one bit if they charged me or served up ads to pay for their expenses and time. Anyone that demands this must remain cost and ad free better be building their own app and hosting their own instance

this post was submitted on 02 Jul 2023
1933 points (100.0% liked)

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