Step 1: groundbreaking service comes in that fills a market hole
Step 2: people flock to service
Step 3: service gets VC funding to continue operations, subsidising the users
Step 4: service gets “copied”, competitors crop up, use VC funding to eke out their own marketshare while making things worse for everyone but themselves
Step 5: expansion plateaus as interest in service generalises (basically, everyone who could be interested, is already using it)
Step 6: VC funding depletes, company has to start making a profit - leading to price hikes, which is followed by other players in the market as that’s how capitalism works
Step 7: price hikes not being enough, service tries to capitalise on their userbase (think restricting features to a higher paid tier, introducing new tiers that strip away features, introducing ads, etc.)
Step 8: market is saturated with plateaud services, user movement is minimal, and everybody hates it because it’s expensive, and reintroduced the same problem the initial innovative service meant to fix.
No, that’s the evolution of venture capitalism.
Step 1: groundbreaking service comes in that fills a market hole
Step 2: people flock to service
Step 3: service gets VC funding to continue operations, subsidising the users
Step 4: service gets “copied”, competitors crop up, use VC funding to eke out their own marketshare while making things worse for everyone but themselves
Step 5: expansion plateaus as interest in service generalises (basically, everyone who could be interested, is already using it)
Step 6: VC funding depletes, company has to start making a profit - leading to price hikes, which is followed by other players in the market as that’s how capitalism works
Step 7: price hikes not being enough, service tries to capitalise on their userbase (think restricting features to a higher paid tier, introducing new tiers that strip away features, introducing ads, etc.)
Step 8: market is saturated with plateaud services, user movement is minimal, and everybody hates it because it’s expensive, and reintroduced the same problem the initial innovative service meant to fix.
Which is why i call it vulture capitalism: dead from start.
No different than what all these AI services are trying to inject into culture right this moment.
It replaced linear tv with video on demand
VOD was a thing before streaming tho
And it was terrible, expensive, and did t work half the time.
Blank tapes were more convenient IMO.
Nah, it worked pretty well. Streaming was just more convenient, and came too soon after VOD became widely available.