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True, but the ramifications can be really harmful. We have two generations now who have born thinking online services and software are supposed to be outrageou
by dwaite 2y ago
True, but the ramifications can be really harmful.
We have two generations now who have born thinking online services and software are supposed to be outrageously cheap or free, just because of companies who have used such services as loss leaders while operating off of their main business or bootstrapping off of VC funding.
We have small businesses who have chosen their revenue model based on what lets them work best within the simplistic financial model of mobile app stores. This is even more apparent now with the EU DMA, where Apple is pushing for a core technology fee that creates a huge financial risk for the freemium product tiering that customers now expect.
Google has the most popular search engine because creating such a thing defends their contextual advertising business. Being the most popular destination allows for higher rates than any incumbent could typically charge. Thus money doesn't exist to fund a competitive commercial search engine from scratch - it needs to being funded by another company as a loss leader (see: Bing) or as part of some other VC-backed product.