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This shows why it wouldn't work. What someone may expect to pay is something like $50/month. In the US, the Fed did a study to figure out how much they would h
by kats 6y ago
This shows why it wouldn't work. What someone may expect to pay is something like $50/month.
In the US, the Fed did a study to figure out how much they would have to pay users to stop using products like Facebook, YouTube, or to stop using search engines altogether.
The median value for Facebook was $48/month, YouTube $1,173/month, and search $17,530/month. [1]
I think many people might pay $50/month to use Google Search, GMail, Maps, and YouTube. But what if they were to pay $18,703/month, just for Google Search and YouTube? Because that's the median price that US users valued these at.
This shows that the advertising model is way better than paid subscriptions, because users are getting much more value out of them (>$18,000/month) than they would realistically pay for them. If all these services were subscription-based and there was no advertising or data collection, almost nobody would pay for them and then the business model wouldn't be scalable so the service wouldn't work. TLDR: The advertising business model is awesome!!
[1]: https://www.cnbc.com/2019/10/11/fed-tries-to-figure-out-value-of-free-internet-services-to-americans.html https://www.cnbc.com/2019/10/11/fed-tries-to-figure-out-valu...