‘Enshittification’ is coming for absolutely everything::The term describes the slow decay of online platforms such as Facebook. But what if we’ve entered the ‘enshittocene’?
‘Enshittification’ is coming for absolutely everything::The term describes the slow decay of online platforms such as Facebook. But what if we’ve entered the ‘enshittocene’?
I straight up do not believe that a company can provide a service for over a decade and not be charging enough to be sustainable. The CEO can come and say this to my face and I’ll call them a LIAR. One or a couple years I could buy the idea of investors holding it up for the sake of establishing the business, but why would they be accepting losses for such a long time? This is funky accounting. I’m more inclined to think “it was not sustainable, we need to charge more” is just something they say when they think they can get away with squeezing more money from customers.
I didn’t say they were operating at a loss, I said they were unsustainable. They’ve been profitable since 2003, but their profit relies on content. With everyone else pulling their content, their cash flow needs to be huge to produce content they can use to attract customers. $10 per subscriber isn’t enough income to sustain the cash flow needed to produce that much content, so they raise their prices to become sustainable. When they relied on licensing content from rights holders, their expenses were smaller, but they have been losing the ability to rely on that.