>people think social media sites are natural monopolies due to network effects

>people think social media sites are natural monopolies due to network effects
>it turns out that as the number of older users hits a critical point, younger users leave
>as partisanship hits a critical point, the opposite party leaves
>heavy partisanship scares off advertisers, leaving only selling data as a revenue stream
>segregation by ideology in the infotainment landscape doesn't require users to have strong preferences for echo chambers
>the same complexity studies/game theoretic conditions that lead to housing segregation will lead to partisan infotainment sphere segregation even if the average user does not mind seeing large amounts of radical content
>each step towards one end of the political spectrum alienates another set of users who leave when too much of the content is too far to one side, this in turn lowers network effects benefits, causing the payouts of staying for other users to decline and thus exits to increase
>exit rates will grow until they hit tipping points before hitting a low user base equilibrium

Shows how much comes down to right places, right time.

  1. 2 months ago
    Anonymous

    >it turns out that as the number of older users hits a critical point, younger users leave
    sounds like you pulled this fact out your ass

    • 2 months ago
      Anonymous

      I love those places where influencers and baby boomers hang out together

    • 2 months ago
      Anonymous

      While it is not mathematics proven. I 100% think having mom & dad on Facebook is not good for the platform.

    • 2 months ago
      Anonymous

      >poopoo tastes bad? you got a source for that, buddy? I don't think that statement is backed up by scientific research. I'm gonna need to see the documentation on that one, champ.

      • 2 months ago
        Anonymous

        Taste is subjective, shiteater.

    • 2 months ago
      Anonymous

      Facebook is literally filled with old farts now, anyone below 35 has already left for browner pastures

      • 2 months ago
        Anonymous

        You're saying this but it's still playing out, maybe younger users come back who the fuck knows. I really hope Facebook just dies though.

        • 2 months ago
          Anonymous

          >I really hope Facebook just dies though.
          It will

  2. 2 months ago
    Anonymous

    A social media platform that give small biz advertising power and depends on money from small business and not big corp is extremely powerful. If your customer base is "decentralized" big corp cant use there own account as leverage against you like what apple is trying to do to twitter.

  3. 2 months ago
    Anonymous

    >as partisanship hits a critical point, the opposite party leaves
    Yep. Fagbook is literally unsuable if you're not a hardcore busy-body who eats ze bugs and lives in ze pod

  4. 2 months ago
    Anonymous

    What comes down to that? The success of these companies is financial, and the money comes in for a simple reason and that's the banks and investors agree that it's worth a lot. These companies don't even produce a profit, but they're given double-digit multipliers to their EV and sell or go public for millions to billions. That's it. The people with the cash are the kingmakers.

    • 2 months ago
      Anonymous

      Elon Musk became an "industrialist" by owning and selling a few software companies, that may or may not have even produced a profit. Now, he owns a car company that runs on subsidies, a rocket company that runs on subsidies, and a social media company that doesn't even have that. All of the wealth comes from valuations.

    • 2 months ago
      Anonymous

      except FB makes tens of billions every quarter, excepting the last few quarters, of course. pouring money into the metaverse is making their taxable income a fraction of what it was before. whether it will pan out or not is certainly up in the air.

      revenues, on the other hand, have certainly taken a huge hit. but the money printer that was running full-bore for two years has now been turned off for the last year, so I don't know how people expect it to continue to grow.

      Sure, FB's not nearly as popular as it was several years ago, but it still dominates globally. nothing else comes anywhere close. I think it's only a matter of time before they stop dumping money into the black hole of the metaverse (or they somehow turn it in to a profit center), at which point those billions start hitting the bottom line again, and their 10 P/E goes drops to 5 before rocketing up to 40.

      • 2 months ago
        Anonymous

        >I think it's only a matter of time before they stop dumping money into the black hole of the metaverse
        Structure means zucc always has control of the company.
        Public shareholders literally cannot make it stop.
        He's already got fuck you money and a god complex. Shares could tank and he's still a billionaire.
        He doesn't care. He literally cannot be stopped.

        If he could be voted out and replaced with a CEO who fires every useless PM and kills capex on metaverse boondoggles, then I'd be bullish as fuck. But it's not happening.

      • 2 months ago
        Anonymous

        >excepting the last few quarters
        Two more quarters!

  5. 2 months ago
    Anonymous

    I don’t think your argument really means much.

  6. 2 months ago
    Anonymous

    >advertising as the primary source of revenue
    literally handing over control of your business, such a stupid business model

    • 2 months ago
      Anonymous

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