• PrimalAnimist
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    2 years ago

    I feel like they all see the inevitability that AI will drastically change the money model very soon. And it will not be to their profit, so best make every penny they can right now is their mentality.

  • @[email protected]
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    02 years ago

    Ultimately a for-profit social platform can only make money via advertising. If you are depending on advertisers to be profitable you become beholden to those advertisers. Advertisers do not care about “community,” “sustainability,” or what made the platform attractive to users in the first place. But they do care about “public perception,” and “number of users,” and most importantly number of impressions per user, per hour. The advertisers customers care about things that hurt their branch, so they dont’ want NSFW content, they don’t want violent content, they don’t want controversial content, they don’t want anti-capitalist content, they want “quality” impressions.

    So if you are twitter or reddit, or facebook, or whatever, if your advertisers make a demand that will piss off your users and make it worse for them you will always do it and you will continue to do it until the platform dies.

  • Kabe
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    2 years ago

    Here is how platforms die: first, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die.

    from Cory Doctorow’s article on ‘enshittification’, which has become mandatory reading.

    • @[email protected]OP
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      12 years ago

      That was a good read, the thing is that it seems that all of a sudden a lot of tech companies are getting more and more anti-consumer. I mean it’s not only the whole Reddit and Twitter thing, now Youtube is getting more aggressive with adblocking, Stackoverflow and their mod protest, Google dropping support for the open source diaper and messaging apps on Android…

      Many companies are getting more aggressive against their customers, and in the end it feels like the internet as it used to be is really dying, and we might end up with the whole “dead internet theory” becoming reality. I don’t know it just feels very depressing.

      • Kabe
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        2 years ago

        If you haven’t already, I suggest reading Stop Talking to Each Other and Start Buying Things: Three Decades of Survival in the Desert of Social Media, a blog post by Catherynne M. Valent. (It’s actually referenced in the article above.)

        It’s long, funny, and angry and damn, did it strike a chord with me. It was written in December, '22 so pre-Reddit meltdown but still very relevant to it.

        Some highlights include:

        Stop talking to each other and start buying things. Stop providing content for free and start paying us for the privilege. Stop shining sunlight on horrors and start advocating for more of them. Stop making communities and start weaponizing misinformation to benefit your betters… It’s the same. It’s always been the same. Stop benefitting from the internet, it’s not for you to enjoy, it’s for us to use to extract money from you. Stop finding beauty and connection in the world, loneliness is more profitable and easier to control.

        Over and over again … I’ve joined online communities, found so much to love there, made friends and created unique spaces that truly felt special, felt like places worth protecting. And they’ve all, eventually, died. For the same reasons and through the same means, though machinations came from a parade of different bad actors. It never really mattered who exactly killed and ate these little worlds. The details. It’s all the same cycle, the same beasts, the same dark hungers.

        All … gone. Dismantled for parts and sold off with zero understanding that the only thing of any value the site ever offered was the community, its content, its connection, its possibilities, its knowledge. And that can’t be sold with the office space and the codebase. These sites exist because of what we do there. But at any moment they can be sold out from under us, to no benefit or profit to the workers—yes, workers, goddammit—who built it into something other than a dot com address and a dusty login screen, yet to the great benefit and profit of those who, more often than not, use the money to make it more difficult for people to connect to and accept each other positively in the future.

        It does end on a hopeful note, though.

        Don’t ever stop talking to each other. It’s what the internet is really and truly for. Talk to each other and listen to each other. But don’t ever stop connecting. Be a prodigy of the new world. Stand up for the truth no matter how often they take our voices away and try to replace the idea of reality with fucking insane Lovecraftian shit. Don’t give up, don’t let them have this world.

        Don’t get cynical. Don’t lose joy. Be us. Because us is what keeps the light on when the night comes closing in. Us doesn’t have a web address. We are wherever we gather. Mastodon, Substack, Patreon, Dreamwidth, AO3, Tumblr, Discord, even the ruins of Twitter, even Facebook and Instagram and Tiktok, god help us all. Even Diaryland.

        It doesn’t matter. They’re just names. It doesn’t matter who owns them. Because we own ourselves and our words and the minute the jackals arrive is the same minute we put down the first new chairs in the next oasis. We make our place when we’re together. We make our magic when we connect, typing hands to typing hands.

        Hello, world. Come in from the cold. This will be a good place. For awhile. And then we’ll make another one.

        Stop buying things and start talking to each other. They’ve always known that was how they lose.

        • @[email protected]
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          02 years ago

          I cannot read that and feel how short-sighted it is. The death of online communities due to money sucks. But how about the actual death of physical people and their physical communities due to literally the exact same thing? It seems douchey to complain about capitalism killing message boards and not connect the idea at all to how it has been killing everything on earth since humans became a thing.

          • @[email protected]
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            02 years ago

            Here it is: good ol’ “Whataboutism”, I almost had hope that one discussion could survive without someone going “wait, what about this other thing that people know and probably care about, but is completely irrevelant to the current conversation at hand?” but ah well, today just wasn’t the day, I guess.

            Seriously tho, to borrow your first sentence: I can’t help but read something like “But how about the actual death of physical people and their physical communities” and think…are people just incapable of caring about two seperate issues of different scales at the same time? I don’t know, maybe I’m weird because I don’t suddenly think of the all starving people around the world and bring them up when the topic of the closing of the food joint a couple of blocks down gets brought up by the regulars…

      • @[email protected]
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        12 years ago

        Many companies are getting more aggressive against their customers, and in the end it feels like the internet as it used to be is really dying, and we might end up with the whole “dead internet theory” becoming reality. I don’t know it just feels very depressing.

        With all the distributed social networks getting popular only among tech-literate people it feels like we’re getting a reverse- Eternal September as well.

      • lightrush
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        12 years ago

        Interest rates. Money isn’t free anymore. It’s still not super expensive but it’s 5x more expensive than what it used to be since 2008.

        • @[email protected]
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          12 years ago

          This is the answer. The age of free money is over and now we are seeing the effect; rampant inflation and high interest rates. The chickens come home to roost, always.

          As a result, the burn rate and runway is starting to be factors in all businesses that aren’t making a profit.

          • @[email protected]
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            12 years ago

            Yep, VCs are unwilling to just fund any old thing hoping they’ll hit the lottery right now when money is “expensive”.

    • @[email protected]
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      -12 years ago

      I’m glad I read through the whole thing.

      Bummed that I won’t be winning a testicle 😰

    • @[email protected]
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      -12 years ago

      I’m glad I read through the whole thing.

      Bummed that I won’t be winning a testicle 😰

    • @[email protected]
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      -12 years ago

      I’m glad I read through the whole thing.

      Bummed that I won’t be winning a testicle 😰

  • Paolo Amoroso
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    12 years ago

    Because they realize they can get away with pretty much anything.

    • @[email protected]
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      -12 years ago

      It’s not necessarily greed. The infrastructure to keep Reddit alive can’t be cheap. How do you pay for that? VC money has dried up so these services that have been free to users are all quickly scrambling to make money. I definitely think they did it wrong. They should have planned the API fee changes out for years instead of trying to force it in a month.

      • @[email protected]
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        2 years ago

        They make money by serving adds to the people providing their site content.

        And no, that is not what happened. They were trying to increase their valuation for future share holders.

        Edit: adding it is the only greed, that is the reason.

  • @[email protected]
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    2 years ago
    1. The growth of online advertising revenue slowed in 2022 for the first time since 2009.It still grew, just slower.

    2. Interest rates went up.

    3. With the collapse of crypto and Silicon Valley Bank (which was overleveraged in crypto), VC money isn’t as free flowing. There really wasn’t that much institutional money in crypto, but it’s still a destablizing force and has had a ripple effect.

    4. AI is making more people aware of bots. This is related to point #1. A huge, unknown percentage of of FAANG revenue is selling online ads to bots instead of real eyeballs and once the word gets out, ad revenue will slow even more for any service depending on online ads (eg reddit).

  • @[email protected]
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    12 years ago

    The user bubble has popped now that investors started questioning why the fuck they’ve been investing huge amounts of money into companies that make no money just because they have lots of users. With that investment money drying up, these tech companies are desperate to start making a profit so they can survive and grow their value still.

    TLDR: investment in unprofitable tech companies is drying up and companies that aren’t profitable are scrambling to make money.

      • @[email protected]
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        12 years ago

        I don’t think “greed” is quite the right word. “Greed” would be the right word if they were trying to make themselves more profitable. But they’re not: they’re trying to make themselves profitable at all. That’s not about greed, but about surviving. You can’t survive unless you stop hemorrhaging money at some point.

        Maybe the question is “Why do investors invest so many hundred of billions of dollars into companies that cannot be profitable without becoming super-shitty? And why do users join them knowing that they’re going to become super-shitty one day?”

      • epicspongee [they/them or he/him]
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        -12 years ago

        To expand on this, it’s not just capitalism - it’s greed.

        No it’s just capitalism lol. Every company has to continue reaping in profits for capitalists or else it dies. This is just Reddit’s way of doing that.

      • @[email protected]
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        02 years ago

        Exactly – this is almost certainly bad for Reddit’s business at this point. The problem here isn’t necessarily capitalism so much as it is a egocentric CEO gone mad with power.

        • @[email protected]
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          12 years ago

          Yea, I am not a capitalism enjoyer, but it’s comical watching people insert their favorite pet politics as the sole reason for everything that’s happening.

        • @[email protected]
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          -12 years ago

          I don’t even think it’s a bad business decision.

          Most people didn’t use 3rd party apps to begin with. I’d guess about 75% of the vocal minority who protested, will continue to use Reddit.

          And a very small % of people will quit Reddit in favor of Lemmy.

      • @[email protected]
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        12 years ago

        What’s good for making more money is not always or even often good for what we would think of as customer-friendly business. If you can wring more money out of a few whales at the expense of pissing off customers who don’t create as much revenue, then in our current system that’s what shareholders apparently want.

        Reddit wants more users in their official app where they can target them for ads, sell NFTs, and whatever other bullshit they want to sell. It doesn’t matter if the experience is worse, and it probably doesn’t really matter if a couple thousand 3PA users split for good. As long as they can tell investors that the official app use is growing and that they can target a greater percentage of users with ads and data, they feel like they won.

  • zelifcam
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    02 years ago

    Let’s be honest. Reddit lost it’s original charm around 2015. Capitalism has a way of killing off all our nice things.

  • astro
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    12 years ago

    capitalism — they want more money