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FB’s ARPU in US in 2019 was $112. Google’s was $256. By comparison, paid services would cost $30/month. You might be willing to pay that, but many will not. Pe
by gregorythecat 6y ago
FB’s ARPU in US in 2019 was $112. Google’s was $256.
By comparison, paid services would cost $30/month. You might be willing to pay that, but many will not. People already share Netflix accounts or bootleg their friend’s HBO accounts.
I think a shift to paid services is _possible_ but I won’t bet on it. The economics and market forces that brought us metered data and text usage haven’t really changed. Destroying the advertising-supported offerings will not spawn competition overnight. But in any case I think the big players are positioned to weather the changes.
And by the way, $30/month/user is an average. If you are have high disposable income you are likely netting FB et al more than that.
- Nextgrid 6y agoHow much of that ARPU is covering overheads of the advertising model (all the infrastructure and middlemen) as opposed to being actual money spent by brands on customer acquisition? If ads didn't exist and people wanted to pay for stuff, wouldn't brands be able to offer lower prices because of easier customer acquisition (not having to pay for ads) and thus people wouldn't need to share accounts if the account costs a couple of bucks a month?