I understand the objective on making (more) money.
Why have 1bn users and make $1 per user? Isn't it better if then have 200mn users and make $20 per user?
For me this 'shedding freeloaders and privacy-oriented-users' helps them more than not.
We have discussed pricing and volumes of customers before in this forum, multiple times, and for multiple products/services.
Is it better to have 1000 users and make $1 from each ($1000), or it is better to have 100 users and make $50 from each ($5000 and less support/maintenance/infrastructure costs)?
Facebook's obligation is to the shareholders. Shareholders want bigger pie. Shareholders will get a bigger pie. Apparently FB didn't lose enough users to be scared. Reality/facts drive this.
In a related note, I installed Viber. It asked me to share data with advertisers. I tapped to see the list. I scrolled (on my android phone) VERY fast, for 22 seconds to go through it.
That may be straightforwardly true for another service — Maps, Email, etc. — but the draw of a messaging platform is its network effect.
"All the freeloaders" is half the reason that WhatsApp is popular: no matter who you want to contact, they likely had a WhatsApp account — from your elderly mother to your college friends to the B&B that you're going to stay at abroad.
If it goes from "everyone I know is on WhatsApp" to "1 in 20 people I know are on WhatsApp" maybe I'm less inclined to continue to fork over $20.
Not necessarily. Sometimes more users is better than higher revenue.
If those 200 million users have to choose between paying you $20/year or paying only $1 and joining a network with 1 billion users...they'll probably choose the later. Then you won't see those 4 billion dollars.
This is the problem. Businesses must take on additional legal responsibilities and not simply say “we care about profits — at the expense of everything else”.
This will require legislation, and perhaps and end to “MBA-culture”, which seems to promote sociopaths to the highest peaks of society.
Maximizing shareholder value was one of the most toxic ideologies of the late 20th century. I've seen more people speaking out against this recently and hopefully this idea gets put to bed like "trickle down" economics.
Why have 1bn users and make $1 per user? Isn't it better if then have 200mn users and make $20 per user?
For me this 'shedding freeloaders and privacy-oriented-users' helps them more than not.
We have discussed pricing and volumes of customers before in this forum, multiple times, and for multiple products/services.
Is it better to have 1000 users and make $1 from each ($1000), or it is better to have 100 users and make $50 from each ($5000 and less support/maintenance/infrastructure costs)?
Facebook's obligation is to the shareholders. Shareholders want bigger pie. Shareholders will get a bigger pie. Apparently FB didn't lose enough users to be scared. Reality/facts drive this.
In a related note, I installed Viber. It asked me to share data with advertisers. I tapped to see the list. I scrolled (on my android phone) VERY fast, for 22 seconds to go through it.