The unit economics of "content" are finally becoming clear 20 years in. 500 views, monetized via subscription at 10% at say $2 per view, with a 10% commission to the platform is $1 500 views, monetized via ads at say $2 cpm is also $1. But one of these is a MUCH smarter $
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Why wouldn't ALL attention move from ads to subscriptions? Only reason I can think of is: available attention (audience hunger) and demand for it (advertiser hunger) far exceeds the amount of quality content available to catalyze it
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I don't think I've seen this point made before, that there is actually a quantifiable demand for quality content for which the size of the advertising market is actually a near-perfect proxy.
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I think the problem is actually going to be a vector misalignment problem. Even if you magically increased the amount of content, it wouldn't be aligned with what advertisers want to sell. But it would still quench the demand, so it would kill advertising from the demand side
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End of conversation
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Happy to talk to you about what I'm working on in this space
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