Earlier quoted context omitted.
That is how it is today. But does it have to be like that ? What is the minimum revenue per user required for service like FB to run. While everyone is sceptical on whether such a service can reach critical mass to make financial sense, a brand new FB replacement may not be able to do it, However FB itself can certainly give that as an option without hurting their revenues substantially. I was sceptical on the value…
Minimum doesn't matter, the only question is if it's more profitable than the current approach. Facebook makes $9/user/quarter. That's every user no matter how little they use the site. The issue however is that the users advertisers care about are the ones with disposable income. The users most likely to opt out of ads are the ones with disposable income. Thus the marginal cost to Facebook from such users is signifi…
>> That is how it is today. But does it have to be like that ? What is the minimum revenue per user required for service like FB to run.
> Minimum doesn't matter, the only question is if it's more profitable than the current approach.
Only if you think strictly inside the box.
The real problem here is one is a misalignment of incentives: Zuckerberg is managing Facebook to maximize the metric he's being evaluated on (profit and wealth), not the value provided to society.