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Can someone explain why FB can't become a paid service that engineers itself for the good of users? I don't know anything about corporate financing but naive n
by lakechfoma 9y ago
Can someone explain why FB can't become a paid service that engineers itself for the good of users?
I don't know anything about corporate financing but naive napkin math says if their 2 billion user base pays $1/month they would be pulling $24 billion a year. Wikipedia says their revenue is $24b/year. Now if they removed their entire advertising aspect (the human labor, infrastructure) their operating costs would go down and that $24b/year would mean more than it does now.
Is that bad math? I would readily pay $1/month to use a service designed for our well being rather than advertisers. I think anyone would. Why isn't this a thing?
- wmeredith 9y agoThe gulf between free and $1 is vast. Do not underestimate it. I'd be surprised if the could convert 10% of their current user base to paying customers at any price.
- pawelk 9y agoAlso $1 does not hold the same purchasing power everywhere in the world. There are places where it is a considerably larger expense than in the US.