Facebook was a much better place before it found a monetization model. Then the enshittification happened quite quickly. I abandoned my account a long time ago, so now, if I occasionally open it, I mostly see creepy ads. :)
Even Google Search, with paid ads at the top of the results, has made searching messier and less productive.
Our payment model there is quite clear. We pay with our patterns and data; we feed the engine that helps them sell us to advertisers.
In that sense, I’m curious about what will happen with AI. I mean, even a $20 subscription feels almost free to me, considering how much intelligence I get in return. And there are still free tiers.
I wonder what happens next. Will they sell us to advertisers? Or are they hoping they can eventually raise subscription prices?
AI is actually a great example because part of the answer is already here. OpenAI has started rolling ads out to Free and Go users in the UK, while Plus, Pro and the higher tiers remain ad-free.
So at least for ChatGPT, the answer looks like both: subscriptions alongside advertising, with API and other revenue on top.
The more interesting question now is which of those eventually becomes most important, because that’s probably the one that ends up having the biggest influence on what the product is optimised for.
I’m not convinced the answer is already here. They still don’t generate enough money from subscriptions, and prices are low right now. I think they’re waiting for more businesses to integrate AI deeply into their operations, which hasn’t happened yet.
But I really hope subscriptions remain the main business model and that competition will be strong enough to reduce the probability of enshittification.
Facebook was a much better place before it found a monetization model. Then the enshittification happened quite quickly. I abandoned my account a long time ago, so now, if I occasionally open it, I mostly see creepy ads. :)
Even Google Search, with paid ads at the top of the results, has made searching messier and less productive.
Our payment model there is quite clear. We pay with our patterns and data; we feed the engine that helps them sell us to advertisers.
In that sense, I’m curious about what will happen with AI. I mean, even a $20 subscription feels almost free to me, considering how much intelligence I get in return. And there are still free tiers.
I wonder what happens next. Will they sell us to advertisers? Or are they hoping they can eventually raise subscription prices?
What do you think?
AI is actually a great example because part of the answer is already here. OpenAI has started rolling ads out to Free and Go users in the UK, while Plus, Pro and the higher tiers remain ad-free.
So at least for ChatGPT, the answer looks like both: subscriptions alongside advertising, with API and other revenue on top.
The more interesting question now is which of those eventually becomes most important, because that’s probably the one that ends up having the biggest influence on what the product is optimised for.
I’m not convinced the answer is already here. They still don’t generate enough money from subscriptions, and prices are low right now. I think they’re waiting for more businesses to integrate AI deeply into their operations, which hasn’t happened yet.
But I really hope subscriptions remain the main business model and that competition will be strong enough to reduce the probability of enshittification.
The person who pays is the customer - great post
Thanks Anthony!