Comment by adastra22
3 months ago
The software industry does pay attention to long-term value extraction. That’s exactly the problem that has given us things like Facebook
3 months ago
The software industry does pay attention to long-term value extraction. That’s exactly the problem that has given us things like Facebook
I wager that Facebook did precisely the opposite, eking out short-term engagement at the expense of hollowing out their long-term value.
They do model the LTV now but the product was cooked long ago: https://www.facebook.com/business/help/1730784113851988
Or maybe you meant vendor lock in?
They did that because they needed ad revenue to justify their growth and valuation, or at least, to make as much money as humanly possible for Mark.
What will happen to Anthropic, OpenAI, etc, when the pump stops?
The funding model of Facebook was badly aligned with the long-term interests of the users because they were not the customers. Call me naive, but I am much more optimistic that being paid directly by the end user, in both the form of monthly subscriptions and pay as you go API charges, will result in the end product being much better aligned with the interests of said users and result in much more value creation for them.
What makes you think that? The frog will be boiled just enough to maintain engagement without being too obvious. In fact their interests would be to ensure the user forms a long-term bond to create stickiness and introduce friction in switching to other platforms.