This is why the data-extraction model beats the service-provision model: few Americans will pay $100 a year for social infrastructure. If we believe Flickr's price point, $25/year, is viable and we want service provision to win, regulations must add $75/year for data extraction.https://twitter.com/hautepop/status/983841072559386624 …
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achievable expense at scale?
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How low you can get the operating cost of the service per user.
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Is the wrong question. Because the market cares about how high you can get market cap, and making and spending a lot per user is rewarded.
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Yes, capitalism is the underlying bug here.
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At least 6 nines of their expenses are designing and operating a surveillance/adtech empire not providing the service users signed up for.
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I'd be surprised if it was more than 80%. And that doesn't take into account that running a subscription service has its own extra costs, like customer service and a different design mentality.
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If you don't need to make more than $10/user/yr, you don't need a subscription model anyway. You can do fine with non-malicious, non-targeted, non-adtech advertising.
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If your investors will permit you to. I think you're missing the larger point here. I don't care if it's possible to run a service this way. I do care why data extraction is the winning choice.
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Yes, the whole economic system is rotten to the core. Data extraction being the winning choice is just the next iteration of ore/gold/coal/oil/uranium/etc. extraction being the winning choice.
End of conversation
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