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I think the general resistance to doing away with ads is related to revenue ceiling. Ad revenue at Google / Facebook scale is a magic money box. In that they c
by ethbro 8y ago
I think the general resistance to doing away with ads is related to revenue ceiling.
Ad revenue at Google / Facebook scale is a magic money box. In that they can tell Wall Street (and deliver) ever increasing monetization per user.
Once they start directly charging users, they can't increase that invisibly via "better" ad tech anymore. Any increase is directly passed on to the consumer. AND ceiling just became users * subscription fee.
- clhodapp 8y agoInteresting insight, thanks!
- ethbro 8y agoThe irony is that the whole game is not that different from the mortgage backed security products that torched the world. The market's a lot smaller, but it looks a lot like the same information asymmetry that led to more and more complicated instruments being created and sold (in what was at its base a game of trying to push leverage).