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You're technically correct (the best kind of correct). There will be advertisers. But... 1. You can't drop prices too much or you're just adding advertisers,
by 3cats-in-a-coat 3y ago
You're technically correct (the best kind of correct).
There will be advertisers. But...
1. You can't drop prices too much or you're just adding advertisers, while not adding revenue. You may even start losing revenue. As the joke goes "we're selling below cost, but we'll make it up in volume".
2. If you also drive more ads and drop prices users also suffer. That's more ads per users, we realize this, right? Imagine over half your timeline being ads.
2. Big advertisers are way over half the total ad revenue. You can try to compensate for it with drop-shipping companies, crypto scam ads, onlyfans ads and so on garbage, but it drags your entire user experience down, it start looking like a ghetto, and people will leave.
So, not that simple.
To be fair? Musk did tell the big ad spenders "go f**k yourself", in WORDS. And I'm sure it was very cathartic for like 10 seconds. But the big spenders told Musk "go f**k yourself" in CASH. And that'll last months, probably as long as he's leading and managing the company and posting there. And that... is the true leverage.