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It is numbers: if the cost of servicing those users in a non-safe content is X, they are worth it only if the revenue received from them in a non-safe content Y
by notyourday 8y ago
It is numbers: if the cost of servicing those users in a non-safe content is X, they are worth it only if the revenue received from them in a non-safe content Y is either ~X or > X.
Unprofitable eyeballs leaving decreases the losses, making a business more valuable.
- ryan_j_naughton 8y agoNot if there is an ecosystem effect, and you need those people to ensure that all the safe content has enough producers, consumers, commenters, etc to make it a living, community and ecosystem.
- notyourday 8y agoThose effects did not work for Tumblr. Tumblr always lost money. That's exactly how it ended up in this situation.