See that’s the cool part, they can’t even sustainably pay video creators via ad revenue 🤠👍
If there’s anything I’ve learned from the past 10 years on the internet, it’s that a purely ad-supported business model doesn’t work. We’ve gotten to a point where a significant amount of consumers use adblockers (or are just less responsive to ads/rarely click through to the advertiser), and tech companies are trying to counteract this by raising subscription prices for paying customers and trying to find ways to maximize ad views (see: YouTube testing blocking people viewing the site with an adblocker, smart TVs with software closed-off enough that the average person can’t easily block ads, etc.)
At the end of the day, this is ad companies being as stingy as possible to ensure their profits don’t keep dropping. To me, I just think that betting on a world fueled by ads and data collection was a mistake, and we’re finally starting to see how it’s even hurting the companies trying to profit off that choice.
Oh yeah, absolutely. It must be exhausting to constantly aim for massive profits rather than simply aiming for a little above breaking even. But hey, we’ve got investors to feed!
See that’s the cool part, they can’t even sustainably pay video creators via ad revenue 🤠👍
If there’s anything I’ve learned from the past 10 years on the internet, it’s that a purely ad-supported business model doesn’t work. We’ve gotten to a point where a significant amount of consumers use adblockers (or are just less responsive to ads/rarely click through to the advertiser), and tech companies are trying to counteract this by raising subscription prices for paying customers and trying to find ways to maximize ad views (see: YouTube testing blocking people viewing the site with an adblocker, smart TVs with software closed-off enough that the average person can’t easily block ads, etc.)
At the end of the day, this is ad companies being as stingy as possible to ensure their profits don’t keep dropping. To me, I just think that betting on a world fueled by ads and data collection was a mistake, and we’re finally starting to see how it’s even hurting the companies trying to profit off that choice.
I think such changes have been actually fueled by the desire for “infinite growth” that investors constantly demand from companies
Oh yeah, absolutely. It must be exhausting to constantly aim for massive profits rather than simply aiming for a little above breaking even. But hey, we’ve got investors to feed!
Thank you for your analysis
Thank God for climbing interest rates. I want to see unsustainable business models actually crash and burn.