YouTube disallowing adblockers, Reddit charging for API usage, Twitter blocking non-registered users. These events happen almost at the same time. Is this one of the effects of the tech bubble burst?

  • CodeInvasion@sh.itjust.works
    link
    fedilink
    English
    arrow-up
    14
    arrow-down
    1
    ·
    1 year ago

    This is the only response required. I’m quickly becoming exhausted of reading everyone’s epiphany on “enshittification” as if it’s some natural eventuality. Yes the money must eventually come, but not always at the expense of platform quality. If anything the results we see from “enshittification” are due to the fact that most businesses fail eventually due to poor leadership.

    Just to echo what you have already said, money today is simply more expensive than it used to be. We even see the impacts of macro monetary decisions on households.

    Buying a house or a car on loan is far more expensive than it would have been a year and half ago. A $500,000 house in 2021 would cost $2,000 a month at 2.75% interest and 20% down. Today same that payment is $2,800 or 40% more expensive at 7.75% interest.

    Modern companies live on revolving debt, so if their suddenly gets 40% more expensive and that same amount of money is also less valuable at the same time (inflation), then they need to make up the difference somehow.

    Corporations are trying to find the balance between squeezing more revenue to pay their ever increasing debt bills while also not destroying the environment that attracted the users (their products) in the first place. Twitter and Reddit are just going about it horrifically because of poor business leadership and decision making. Netflix’s approach appears to be sustainable, and there is no doubt that YouTube will be fine in the long run.

    This is not meant to be apologetic to the decisions made by Twitter and Reddit. They’ve made their bed through their own horrible decisions, and now they’ve got to sleep in it.

    • I Cast Fist@programming.dev
      link
      fedilink
      English
      arrow-up
      9
      ·
      1 year ago

      I remember a video, I think from ColdFusion, explaining how the economy has been working on debt on top of debt since the 2008 crisis. The whole idea of “grow first, profit never later” is only possible thanks to endlessly rolling debts. A bubble begging to burst

      And the irony is that the same motherfuckers responsible for that problem will be responsible for this next one AND they’ll still stay rich, while we slave away having to deal with “economists” complaining that we want to own houses.

    • dragontamer@lemmy.world
      link
      fedilink
      English
      arrow-up
      1
      ·
      edit-2
      1 year ago

      Buying a house or a car on loan is far more expensive than it would have been a year and half ago. A $500,000 house in 2021 would cost $2,000 a month at 2.75% interest and 20% down. Today same that payment is $2,800 or 40% more expensive at 7.75% interest.

      Note that mortgages are not what companies pay for loans.

      https://fred.stlouisfed.org/series/BAMLH0A3HYCEY

      CCC bonds yield is the “low-quality” bond market, and is closer to what you might expect a no-profit internet company to be borrowing money at. 2021 was 6%ish interest rates, but today is ~12%+.

      But 2016 was ~18%+ rates, its much more volatile than the mortgage market.

      • CodeInvasion@sh.itjust.works
        link
        fedilink
        English
        arrow-up
        1
        ·
        1 year ago

        You are absolutely correct! I just couldn’t think of a way to further dive into that nuance, but I also wanted the example to be relatable and tangible. Thank you!