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.
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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.
Cory Doctorow has some very interesting blogposts on the topic. He call it enshittification. It's more or less the business model of plattform Capitalism.
Start making alternatives, open source alternatives.
Economy is going bad, interest rate are up, and all Silicon Valley's company are built upon VC loans and expansion goals. Scale economy is bound to fail, and it's happening now.
This is the answer. There was a lot of free money and now there isn't. Companies gotta cough up profits or go bust.
Public companies are legally required to always do their best to grow year over year. Eventually these companies get so large they can't realistically get more market share so they have to figure out how to make more money from their users. This leads to them squeezing users for cash in the hunt for short term gains because they've already realistically capped out on how much money they can make per year. It's a dumb system that can't work in the long term.
As a phenomenon you'll see a lot of people call it "enshittification." The term seems to originate with Cory Doctorow who writes, "Here is how platforms die: first, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die."
The whole article on his blog is worth a read here: https://pluralistic.net/2023/01/21/potemkin-ai/#hey-guys. His Mastodon handle is @pluralistic if you'd like to follow his work there (woohoo federation!).
ChatGPT and Stable Diffusion are the reasons. I’m starting to see commercials that are using highest tier video tech. Just keep pushing.
That’s one community that’s worth supporting.
Because you are the product, not the client. You are only catered to enough so that you may be coralled. You are basically cattle to these corporations.
As for why this is happening now:
- The economy is in a downswing right now so we are going to see cost cutting and belt tightening.
- Entrenched proprietary social media platforms are basically monopolies. You cannot choose to use an alternative because these are walled gardens and leaving means losing your ability to communicate with large groups of people. The larger and more entrenched these big firms get, coupled with lack of regulation means they can do whatever the fuck they want. You have no power and no choice (except for the Fediverse, a one-time pain to migrate to).
They wish it's this easy to keep people. If businesses knew how to monopolize the market forever, they wouldn't have been so desperate to set up these walls.
I dropped cable for Netflix years ago with a shrug, and as Netflix and all the streaming services are turning into cable I dropped them too and will wait for the next thing. If talking to some large group of faceless masses becomes annoying and spam filled, I'll keep my resources for other things I can turn my attention to.
It's weird to me to see these artificial structures treated as though they're some real solid thing with no alternatives. That's literally these companies' PR to make us believe it
Capital only looks out for itself. Online communities are a product to be exploited in the eyes of investors. The purse strings are getting tighter with rising interest rates, and investments that relied on potential are suddenly less exciting when the price to service goes up. Profit is king at the end of the day. It sucks, but that's capitalism.
But the good news is, tech is a highly disruptable industry. Barrier to entry is accessible for regular people.
And that's why we're here.
Reddit doesn't die because we left. They die in a few years when the Fediverse just works better than Reddit. And we fund that.
Speaking of, how do I kick in a few bucks to help out various Lemmy servers? Anyone know?
Greed. It's all driven by greed. It's not just social media companies either. My best guess to why it's happening now.. The boomers are aging out and want to take every last bit they can squeeze out before they retire/die.
I wish it was just the boomers. We have a whole new generation of greedy corporate bootlicks on their way up.
Because most services we are using aren't sustainable. They all bleed money.
That's by design, isn't it? Dominate the market while operating at a loss then monetize once you have attained monopoly. Like Uber's strategy. This is an awful way of conducting a business IMHO, it falsifies the economy. I honestly believe they should put severe regulations on this.
Ish.
It is a strategy that works when interest rates are 0%, and the 2008 recession was so bad that the IS Fed kept interest rates low until 2021.
Redo the math at 5% interest rates today and 13 years of $1 Billion investment needs to make $1.8 billion just to break even. Money losing strategies are nerfed in this new meta.
What are the dumb updates discord is doing? I haven't noticed anything different, except for the username change that doesn't have a gamertag anymore.