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Pivoting to a subscription model is going to be incredibly difficult, but long term is critical if Meta wants to offer a platform that makes massive profit, and
by crowcroft 3y ago
Pivoting to a subscription model is going to be incredibly difficult, but long term is critical if Meta wants to offer a platform that makes massive profit, and doesn't make a bunch kids want to kill themselves etc.
The core issues are kind of related.
1. The value of a channel/platform to advertisers has an exponential relationship to that platforms reach. This is why Meta is bathing in money, and Snap struggles to make a dollar.
2. The people advertisers most want to reach (rich people) are the first to pay to remove ads.
I suspect Meta will want to focus on getting minors into the subscription platform initially since they low(er) value to advertisers, and highest risk for regulation etc. and then over team letting these young people stick with the sub model as they grow up. By the end of the decade they would more aggressively be able to move away from an ad-supported model then...
- wodenokoto 3y agoAt that price point it is not a serious attempt at gathering subscribers. It’s to show law makers that there is an alternative to ads and probably that “users aren’t interested”.
- crowcroft 3y agoPossibly, but it wouldn't really make sense to offer it at a lower price considering their current monthly ARPU in Europe is ~$6-$7. If they offered a lower price subscription and a lot of people jumped onto it it would be disastrous for the business.