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SulaymanF ,

It’s a process known as Enshittification.

Here is how platforms die: first, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die.

The rest of the read is quite good.

cantstopthesignal ,

Interest rates go up > VCs can’t barrow free money and demand a return on investment > companies try to demonstrate profitability > enshitification

theUnlikely , (edited )

YouTube is blocking adblockers? News to me

Tenthrow ,
@Tenthrow@lemmy.world avatar

they are “testing” it. But yeah it’s all over tech news right now.

Labotomized ,

I hope it goes the same way as the time they “tested” playing like 10 super short ads before the video. That and this are both plain awful sigh

SquareRouteCanal ,

VPN thru Albania is no longer blocking ads on YT for me any longer.

Chailles ,
@Chailles@lemmy.world avatar

That’s a oddly specific way to block ads, why not just use a regular adblocker?

Feweroptions ,

I block YouTube ads via newpipe or brave, haven’t had any problems.

Labotomized ,

Didn’t you read? They’re blocking the adblockers lol

Chailles ,
@Chailles@lemmy.world avatar

I was under the impression that instead of using an adblocker, they’ve just used a VPN, even before adblockers being blocked, and now it’s stopped working because of these changes.

Shadywack ,
@Shadywack@lemmy.world avatar

Like several of the other comments that highlight the interest rates, for those of us who saw the late 90’s/early 2000’s tech bubble burst it’s the same thing all over again.

xaxl ,

Oh you thought the end goal was to make a good website. Hahaha.

squarewagon ,

AI training and data mining. The value of data has surpassed the value of oil long ago. The words most valuable resource is no longer oil.

themoonisacheese ,
@themoonisacheese@sh.itjust.works avatar

Oil companies have assets and cash in the trillions it’s not even funny. Even openAI who has the most state of the art AI systems on the planet right now is worth at best a billion, and is getting heavily subsidized by Microsoft. AI companies will probably get larger in the future, but the modern world depends on oil for literally everything including the making and the shipments of parts used to run AI shit. You seem to be grossly overestimating how much data is worth and grossly underestimating the power and money oil cartels wield.

squarewagon , (edited )

There’s a reason big tech companies are worth hundreds of billions of dollars yet most of their users have not paid a dime. So yes, data is valuable.

Data is very valuable. Google shows advertisements like they’re listening to people’s conversations, except they aren’t. Their data profiles and predictions are so good they know what you want to buy before you even know you want to buy it.

GustavoM ,
@GustavoM@lemmy.world avatar

For the same reason you need to get a job.

zazaserty ,
@zazaserty@discuss.tchncs.de avatar

They have grown to the point where they are now focusing on being more profitable. And apparently they are not scared of losing users.

scumola ,

Could it be related to the silicon valley bank going under maybe?

Stovetop ,

Kinda? The bank going under is indicative of financial instability in the wake of COVID, and it’s that same financial uncertainty coupled with rising inflation that has put an end to the bottomless well of venture capital that tech companies used to take advantage of.

SVB was killed because their customers did a run on the bank (withdrew large amounts of money in fear of a collapse) and they didn’t have enough in assets to cover it all, which led to the inevitable collapse. A bit like how early in the COVID days, there was fear that stores would run out of supplies, so people bought up everything they could in bulk and then the stores ran out of supplies. Panic about a potential outcome which then causes that outcome to happen.

JohnBoBon ,

It’s all about the money, money

Nutteman ,
@Nutteman@lemmy.world avatar

All of the sudden? This has been happening, maybe slowly at first, since every one of those platforms started, imo.

Clown_Tempura ,

The ‘trust thermocline’ occurs when an organization repeatedly takes their customers for granted, and they reach a critical point of ‘no trust return’ and just leave. Essentially, if you gradually provide less quality while charging more money, you erode trust- and if you lose trust, you don’t actually ever get it back. See: Twitter. And possibly now Reddit. Great term, I love it even, but I hate that the lesson these people are learning isn’t ‘hey maybe we should stop pissing people off without good reason’ and is instead is “this is acceptable risk and we should continue playing chicken with dissatisfied users to make our shareholders happy.”

dukk ,

Red Hat fell for this same trick too, the new enterprise pricing is unacceptable.

AccidentalLemming , (edited )

deleted_by_author

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    rookie ,
    @rookie@lemmy.world avatar

    well, they hired thousands of devs in the last few years, only to direct their efforts to self-hosting videos, chat features, customizable snoo avatars you can sell NFTs for, etc. (you know, things people wanted)

    so I can understand the loss potentially growing in recent years, given what they’ve been spending on

    letraset ,
    @letraset@feddit.dk avatar

    You could sell your Snoo for NFTs? This is dumber than even I can imagine.

    _Tom_ ,

    Reddit only started hosting images and videos a couple years ago. That alone would massively add to costs. It’s self inflicted and seems it was planned in an effort to keep people on the platform instead of linking to imgur to view the picture.

    They brought the added overhead on themselves

    snek ,
    @snek@lemmy.world avatar

    Could it have something to do with inflation?

    dragontamer ,

    The opposite. Inflation makes debt cheaper. If you borrow at 10%, and inflation is 10%, its like you borrowed money for free.

    The issue is that central banks increased interest rates significantly. If you need to borrow more money, its at 14%, 16%, or higher now.

    turt1e , (edited )

    I was having trouble wrapping my head around this at first but if the example below is correct I think I get it now.

    Suppose you borrow $10,000 from a lender at an interest rate of 5% per year, and you have to repay the loan in one year. Now, let’s assume that there is an inflation rate of 3% during that year.

    Without inflation:

    Loan amount: $10,000
    Annual interest rate: 5%.
    Interest payment: $10,000 * 5% = $500.
    Total repayment: $10,000 (loan amount) + $500. (interest payment) = $10,500.

    With inflation:

    Loan amount: $10,000
    Annual interest rate: 5%.
    Inflation rate: 3%.
    Interest payment: $10,000 * 5% = $500.
    Total repayment adjusted for inflation: $10,000 (loan amount) + $500 (interest payment) = $10,500.
    Inflation-adjusted value of repayment: $10,500 / (1 + 3%) = $10,145.63.

    In this example, the inflation rate of 3% effectively reduced the real value of the debt repayment to $10,145.63, making it cheaper in real terms. This is because the value of money decreased due to inflation, allowing you to repay the debt with dollars that have a lower purchasing power.`

    dragontamer ,

    $ is ambiguous. You need to say 2023$ vs 2022$. Once you have year-$ in front, everything becomes super-obvious.

    Loan amount: 2022-$10,000

    Total repayment: 2023-$10,500

    Except April2023$ is 4.9% less value than April2022$: bls.gov/…/consumer-prices-up-4-9-percent-from-apr…

    So April2023-$10,500 is equivalent to April2022-$9985.50, inflation-adjusted.

    KluEvo ,

    You forgot discord and the username changes, which happened a few weeks ago

    rookie ,
    @rookie@lemmy.world avatar

    and now they’re advertising stuff like subscription tiers and server shops, which makes me feel like they’re using a completely different service than I am

    ShittyKopper ,

    So when are we readying the Matrix homeservers?

    …and getting Element to care about chat UX rather than throwing Matrix at any other problem they can think of (no we do not need a vr metaverse but FOSS)

    danboy4 ,

    Because investors are tired of the model where they dump a shit load of cash into something that has no good path for monetization. So they’re forcing them all to make money which hurts users.

    cavveman ,

    This worked when there was basically no interest on money that was lent from banks. But now when the interest is on the uprise. Well, naturally investors and banks pull the plug.

    To be fair. I’m quite surprised that the plug wasn’t pulled several years ago. Twitter has almost never being in the black, always in the red. Reddit has never publicly showed it’s numbers, not yet. But would not surprise me if it was red numbers every year.

    NutWrench ,
    @NutWrench@lemmy.world avatar

    Yup. You can’t monetize something whose value is determined by the whims of the people who use it. There are a million websites streaming porn that do a better job of monetizing content than YouTube.

    How did the “investors” think this business model was going to work, again? “Let’s get millions of people to donate their time and content . . . pay them pennies in return, monetize all their content for ourselves and here’s the good part . expect them to PAY for the privilege of accessing it?”

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