I mean there’s Reddit ofc, as well as Twitter in its entirety, Discord is implementing some dumb updates, there are issues with Tumblr as well as everything to do with Meta, and I’m sure there are plenty more (and I haven’t even touched other digital media, for example the Sims). Why is it all happening in the span of about a couple months?
Late stage capitalism You make a business and it goes well, you make some money everyone is happy.
But with time your profits will plateau or even decline. It’s natural, but businesses don’t understand that it is insane to expect a company to always turn crazy profits when the product does not evolve.
Companies like apple and Microsoft don’t worry as much because they are constantly evolving with new product.
Companies like Twitter, Facebook, reddit, Netflix have hit a wall where there really isn’t anywhere else to go so they start making shareholder centered decisions made by people who aren’t even in touch with the user base of their product.
Lets take the example of Reddit. Reddit could have kept its costs to the minimum and could have run the site with the ad revenue that came in. In fact they could have talked transparently about their opex and asked for a simple donation drive every now and then like Wikipedia. If need be, they could have removed silly GIF replies and other stuff and focused on text alone. However this would not let them become the next Facebook. That’s what they wanted to be. At some point in their story was a choice to be forums 2.0 or get into a race to become a cash grab. Sadly they went for the latter.
n fact they could have talked transparently about their opex and asked for a simple donation drive every now and then like Wikipedia.
Let’s remember this about Kbin and the Fediverse.
I would donate to help counterbalance the wave of migration that brought me here.
It’s the money.
US Fed has raised interest rates, destroying money for the first time in decades in an effort to stop our inflation problem
The knock on effects is that banks literally have less money to lend to companies. Some companies are affected more than others by this environment. Tech was hit hard, extremely hard.
With hundreds of thousands of layoffs, tech industry is contracting. Silicon Valley bank literally evaporated in the span of 3 days. Twitter was losing money and had to sell out. StackOverflow is losing money and is currently selling out.
In this environment, Reddit is about to launch it’s long awaited IPO, the time when the public is allowed to directly buy Reddit stock and invest into the company. That’s what Initial Public Offering means. If Reddit does well, Reddit will pull in lots of money this year through this IPO.
The CEO of Reddit needs to prove Reddit is profitable, or if not profitable… Will eventually be profitable. Stockholders don’t care about Reddit drama for the most part, but most are smart enough to read financial sheets. Reddit needs to show growing revenue, growing profits and cutting costs to attract money.
As such, all of what Reddit’s CEO has done makes sense in the context of the IPO. He is betting that shareholders won’t notice the drop of high quality content creators from Reddit, since that’s not a financial number that’s reported. He can IPO, raising millions, maybe even billions for himself. The golden parachute outta here when everything gets screwed up in a year or two and collapses.
I think today’s investors are smarter though, and the bearish economy and high interest rates means more investors will pay attention to underlying issues.
Yeah, investors are going to be even more inclined to identify exactly why the platform might be successful in the future. They’re not going to blindly throw money at new IPOs (as much) because debt isn’t free anymore.
U just enlightened me sir. Thank you.
Generally the drama isn’t a big deal. But in a specific case the only value of the site is in the community moderation and the depth of data on the site.
He needs investors to buy in but he also needs advertisers to buy in. Advertisers do not love paying for negative drama.
Because of capitalism, no seriously these decisions are based on money and growth. But both of these things are relatively finite. You can’t keep have exponential growth year after year. Eventually you will plateau but there isnt a mechanism in capitalism to accept that. So companies start forcing monetary gain.
Growth for the sake of growth is the ideology of cancer.
And like cancer, it will eventually kill its host once things are beyond saving.
What were the bad decisions discord is making? Im out of the loop
A lot of these companies have never been profitable and have been running on VC money on speculation alone until they reach critical mass and can turn on the monetization streams.
The VC money is drying up and they’re demanding a return on investment as the world’s economy struggles on at the moment.
I don’t know honestly, greed probably. But it’s such a shame. It seems like the internet as a whole is heading in a horrible direction, and not enough people care about it for there to be something done about it.
The climate is heading in a horrible direction, and not enough people care. Politics are heading in a horrible direction, and you know what? Not enough people care!
Sorry, the last 4 years has made me very cynical. And I’m in a particularly blue mood today.
dude i feel that. its just lame and hard to grip with
its like i wish almost that i didnt care
But here we are dipping our toes in the fediverse, a bit early for the non tech savvy people but from my point of view we are currently proving that monolithic corps are no longer needed. They are convenient, but not alfa-omega.
Capitalism slowly shits up everything. Even the things it helps create.
I mean this in the most general way possible. Not just platforms. Even if reddit was profitable it would still continue. It’s just part of the cycle of seeking not just profits but ever rising profits.
It’s just more obvious lately on digital platforms because it has been kind of compressed into smaller amounts of time.
That which is free must find a way to cost.
That that makes money must find a way to make more.
And slowly but surely its takes on a fine shine. A glean seen from a distance. But when you get close you realize. “oh, its fucking shit all over it.”
I swear every problem in the modern world is like two degrees separated from capitalism.
Yeah… I mean, we on one hand, we now grow plenty of food to feed almost 8 billion people, cured polio, greatly extended lifespan all over the globe… But on the other hand (waves hand at everything).
Eternal growth on a finite planet ain’t possible, but capitalism demands it. ¯\_(ツ)_/¯
I think the free money train in leaving the station and everyone is scrambling to be profitable. But that’s just an assumption based on twitch and Reddit right now.
Running out of VC dollars, now they gotta actually make a profit.
$
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Capitalism created reddit.
Workers created Reddit, like everything else. Economic systems don’t create anything, only determine who profits from those creations.
workers created the platform, Reddit is the content that is freely created by the community. see how now all the search results are useless because users deleted their own content, but the platform is still there.
Edit I just found out that all my content that I edited + deleted a week ago and wasn’t visible then, is back.
To check if your data is still available on reddit just do a Google search putting site:reddit.com and your username after it in the search box. Google has still the username in the cache so when you click on the link you’ll find your content under a “deleted” username.
You’re right, I should have specified I was referring to the platform. My point was against the dumb narrative that capitalism creates anything.
Capitalism is good at creating things, but terrible at maintaining their quality over time, because at the end of the day profits don’t always go hand in hand with product quality
The sad truth. For example, Insta Pot has gone bankrupt recently because they built their stuff too well, and no one needed to buy more than one. Capitalism is the reason we have planned obsolescence and deliberately poor build quality of products.
Higher interest rates, less vc money, have to actually start being profitable
Honestly I think it’s this. All these tech companies finally being pressed to show ROI now that the risk-free rate of return is much higher.
VC money drying up means enshittification machine slamming the gas
No doubt. Instead of slowly making it shittier bit by bit so that we didn’t noticed, they had to go mask off an remind us that we are the product.
Everyone’s a genius in a bull market with a near zero interest rate.
