[HN Gopher] The Whole Web Pays for Google and Facebook to Be Free
       ___________________________________________________________________
        
       The Whole Web Pays for Google and Facebook to Be Free
        
       Author : chewz
       Score  : 217 points
       Date   : 2021-03-03 08:17 UTC (14 hours ago)
        
 (HTM) web link (www.bloomberg.com)
 (TXT) w3m dump (www.bloomberg.com)
        
       | docdeek wrote:
       | > The same applies to Twitter and Substack, where signing up to
       | just four writers' output at $5 a month each is already more than
       | the cost of a $17 New York Times subscription, which gives you a
       | greater breadth of coverage.
       | 
       | Imagine I really like hamburgers. I might choose to $5 each week
       | on a burger and be happy with the quality of a burger made by
       | people who only make burgers.
       | 
       | The alternative is spending $4 a week so I could access a buffet
       | with lower quality burgers (after all, it's not their speciality)
       | but also hot dogs, sandwiches, poke bowls and sushi.
       | 
       | Trying to convince me that the buffet is a better deal just
       | because I have access to a wider range of foods when all I really
       | want is a burger is not a winning argument for me.
        
         | dgudkov wrote:
         | Substack bundling is inevitable as subscription-based blogging
         | matures. It's just a matter of time until we start seeing
         | offers "Subscribe to top authors A, B, and C, for only $X/mo".
        
           | rchaud wrote:
           | Medium.com all over again.
        
         | rad_gruchalski wrote:
         | You can't survive on a burger a week and you will eat other
         | food too between your $5 burgers. So maybe it's worth spending
         | the $4 / week covering "most of the other food" you gotta eat
         | anyway.
        
           | docdeek wrote:
           | It's not an exact analogy, that's for sure.
           | 
           | Maybe I could save it by asking where am I likely to get a
           | better quality burger: the place that charges me $5 a week
           | just for burgers, or the one that charges me only $4 a week
           | AND I get a whole lot of other stuff I don't like but could
           | still consume
        
           | nxpnsv wrote:
           | Depends on the size of the burger I guess :D
        
           | HPsquared wrote:
           | Paying for news has become something of a "luxury" product.
           | 
           | In these conditions, quality and satisfaction of a niche is
           | more important than quantity (though quantity has a quality
           | of its own)
        
             | dotancohen wrote:
             | It always has been.
             | 
             | Source: I'm over the hill. now get off my lawn.
        
           | jrumbut wrote:
           | And, to strain the metaphor further, most of the $5 burger
           | makers are just repackaging the $4 burgers since the $4
           | burger makers are the ones who gather the ingredients.
        
         | Barrin92 wrote:
         | It's questionable whether a lot of substack writers give you
         | more quality access than the entire newsroom at the NYT, WSJ,
         | or similar newspapers, where a lot of substack writers still
         | contribute.
         | 
         | I think the high fees on substack, like on patreon have another
         | reason. It creates a weird parasocial relationship between the
         | creator and the reader that gives the reader the feeling that
         | they have contributed to a cause, or has some personal
         | relationship with the author they support, and so on.
         | 
         | In that way it seems to me more similar to twitch streamers who
         | often extract huge sums of money from their donors, when
         | objectively the viewer gets more content out of a 10$ streaming
         | subscription.
        
           | vergessenmir wrote:
           | It is also questionable whether the newsroom @ NYT, WSJ give
           | much quality to begin with.
           | 
           | That being said, there is value depending on what topics
           | you're interested in. The value of NYT for me is the Arts &
           | culture section. But I'd happily pay for Matt Stoller's
           | content,Taibbi, Siskin or Gwern if he had one.
           | 
           | There is risk that's been highlighted of creating bubbles but
           | seeing how news media has reinvented itself over the last
           | decade, I can't see how that can be avoided, except this
           | bubble is self-curated and more specific, which one can argue
           | is better.
           | 
           | [Edit: clarification on last line]
        
             | exolymph wrote:
             | Gwern has a Patreon! https://www.patreon.com/gwern
             | 
             | And a Substack for his newsletter:
             | https://gwern.substack.com/ (AFAIK this is free though)
        
           | ebiester wrote:
           | They get _different_ content.
           | 
           | Nowhere on that streaming content is someone explaining the
           | intricacies of speedrunning The Legend Of Zelda (as a simple
           | example.) It turns out there may only be a couple thousand
           | people in the world really that interested in that content,
           | and only a few hundred willing to pay for it. The economy of
           | scale thee changes the calculus of how much you are willing
           | to pay.
        
             | gota wrote:
             | Good example.
             | 
             | > t turns out there may only be a couple thousand people in
             | the world really that interested in that content,
             | 
             | As evidenced by the success of SummoningSalt's youtube
             | channel
        
           | moron4hire wrote:
           | One of the big things that strikes me about these journalists
           | who leave their papers or start a side gig on Substack is the
           | marked decrease in the quality of their writing. The role of
           | the copy-editor is extremely important.
        
             | ameister14 wrote:
             | Which is why it's so frustrating that the NYT laid off most
             | of theirs.
        
             | rchaud wrote:
             | They're also managing the business side of things directly,
             | which can be very time consuming when you're getting
             | started.
        
           | bluefirebrand wrote:
           | > It creates a weird parasocial relationship between the
           | creator and the reader
           | 
           | This is honestly a troubling trend in my opinion. These
           | parasocial relationship are sort of emergent based on these
           | new creator->fan direct channels that are popping up.
           | 
           | I'm concerned that now these platforms are going to lean into
           | this even more, encouraging this sort of thing instead of it
           | just happening organically.
           | 
           | These relationships are really not healthy for people. Not
           | for the creator (even though they profit from it) and
           | absolutely not for the fans who are likely missing out on
           | forming real relationships with real people in favor of this
           | parasocial thing that will ultimately not be fulfilling (and
           | expensive) for them.
        
             | rchaud wrote:
             | I wouldn't worry too much about it. A mailing list is
             | usually a means to an end. Most people writing on Substack
             | are also writing a book manuscript behind the scenes,
             | because that's a reliable way to monetize one's following.
             | 
             | It's a different type of relationship if you're a
             | 'personality' on Twitch or IG, and your audiovisual
             | presence is what gets people to follow you. Books don't
             | monetize nearly as well, and a lot of the people in this
             | area don't really have anything to write about. So they
             | pitch what they can: energy drinks, mattresses, Audible
             | subscriptions.
        
           | cosmodisk wrote:
           | It also depends on the subject. For instance, there's an ex
           | journalist in my country pulling in EUR20K/month on Patreon
           | by making videos on corruption in the country. It resonates
           | well with the audience which doesn't seem to be able to get
           | similar content from the newspapers/TV channels. There are
           | some random writings on Substack,but there are also those
           | that aren't covered much in more popular media, which leaves
           | a gap and some writers are happy to fill it.
        
           | gregshap wrote:
           | I would pay more for a subset of the current NYT. The website
           | is full of imo prominently displayed clickbait that I
           | consider negative value.
           | 
           | I'm a previous subscriber of NYT and Bloomberg online. I've
           | kept my WSJ subscription partly because its easier to consume
           | only the useful content.
           | 
           | I also subscribe to a couple of email lists where the author
           | absolutely provides value in their niche over and above the
           | larger newsrooms. They are usually great complements to each
           | other and it tells you something that the journalists are
           | also reading the newsletters.
        
             | tekdude wrote:
             | > _The website is full of imo prominently displayed
             | clickbait that I consider negative value._
             | 
             | When checking the New York Times, I prefer to look at the
             | "Today's Paper" list of headlines, it's much easier to
             | parse and less clickbaity:
             | https://www.nytimes.com/section/todayspaper
             | 
             | Same for the Washington Post:
             | https://www.washingtonpost.com/todays_paper/updates/
        
             | daveguy wrote:
             | I feel the same way. I stopped my NYT subscription because
             | of "native ads"... Aka, paid advertising content posing as
             | a news story by the outlet. I will not support deceitful ad
             | placement. Subscriptions or ads. Pick one. No native ads.
        
         | yerwhat01010 wrote:
         | > Back in 2006, the New York Times charged readers an average
         | of $534 for a subscription, while it brought in a further
         | $1,064 per subscriber from ads.
         | 
         | Wait, what? Is this the yearly figure? A subscription to the
         | NYT cost >$500/year? Who the hell pays that much for a
         | newspaper?
        
           | CaptArmchair wrote:
           | Yes, those are yearly figures for an all-in subscription (no
           | paywalls on their site, daily paper, weekend edition, access
           | to all apps). And they are in range of what you'd expect. I
           | just checked the current subscription price for the NYT.
           | Where I live, it would set me back EUR 715 yearly. I compared
           | that to one of the big newspapers in my country, a similar
           | all-in would cost me EUR 480 (that's USD 580) yearly.
           | 
           | You'd think that's expensive, until you start to dig into the
           | economics of running a modern newspaper. The operational side
           | is massive and complex. There's the newsfloor (NYT employed
           | 1.300 staff writers in 2016), digital infrastructure to
           | maintain and evolve and logistics for actually printing and
           | distributing of paper, and so on and so on.
        
           | s_dev wrote:
           | I pay EUR2 a week for a digital NYT subscription.
        
           | chrisseaton wrote:
           | > A subscription to the NYT cost >$500/year? Who the hell
           | pays that much for a newspaper?
           | 
           | Eh? That's less than $1.50 a day?
           | 
           | That's how much it used to cost to get it delivered to your
           | door daily.
        
           | slightwinder wrote:
           | Printing Paper and transporting it every day to you is
           | costly. And back then, content was generally more expensive,
           | because there was no elaborated online-crowd who delivered
           | you half of your content for free. Today you have wikipedia,
           | reddit, google, twitter, e-mail and many more which allow you
           | to research many stuff from home. Back in the days you were
           | forced to go around physically, talk to people face to face,
           | visit libraries, maintain your own library. That was far more
           | expensive than what you can do today.
           | 
           | At the same time, because of the high quality free knowledge
           | we have today, you can externalize knowledge and let people
           | research it themself if they wanne know, and get away with
           | lower quality of writing, meaning you can do it faster and
           | need less people to pay. Meaning you can offer a lower price,
           | because it's neccessary to compete in a world of massivly
           | free information.
        
             | m463 wrote:
             | > Printing Paper and transporting it every day to you is
             | costly.
             | 
             | The whole "technology tree" for newspapers like the New
             | York Times was actually really fascinating. Paper and Ink
             | by the trainload and delivery trucks making their way
             | across the nation in the wee hours of the night.
             | 
             | do papers even have print editions anymore?
        
               | fakedang wrote:
               | Uh, yes? NYT, LA Times, WSJ are examples of some that
               | have running print editions. Even more common in the old
               | world.
        
           | [deleted]
        
           | kmlx wrote:
           | I pay PS33 per month for the digital version of the Financial
           | Times: https://www.ft.com/products
           | 
           | If you're into that niche, it's great value for money. But
           | even with those prices, FT still runs ads on their pages.
           | 
           | Unfortunately in today's world, where people get their news
           | "for free" from fb.com or twitter.com or news.google.com, it
           | seems like a huge price to pay.
        
             | strangeattractr wrote:
             | FT is a great newspaper.
        
           | blablabla123 wrote:
           | But it's a daily Newspaper, that's a bit less than 1.50$ per
           | day for a lot of written paper. (Some online magazines charge
           | that per article...) I would go for that if I just read daily
           | news from one source. Instead I have a varying number of
           | subscriptions, nowadays mostly digital.
        
           | tschwimmer wrote:
           | It used to be that print newspaper subscriptions were quite
           | expensive. Now that news is so heavily devalued subscriptions
           | are a lot cheaper but even in the early 2000s a premium daily
           | newspaper subscription could easily be $50 a month.
        
           | batiudrami wrote:
           | $1.50 a day? It's about what you'd spend on a physical
           | newspaper.
        
         | ling3 wrote:
         | The problem with buying the NYT subscription is that you still
         | get the ads. If not overtly, then they are still buried in the
         | content in some sponsored form or another, because this is a
         | large part of how the newspaper makes money. And the newspaper
         | has other agendas too - political, commercial, etc. The
         | Substack model, on the other hand (at least so far) lets you
         | cut out most of the crap - the signal to noise ratio is just so
         | much higher.
        
           | fakedang wrote:
           | And yet Substack was featured on HN top for running ads in
           | their email newsletters....
        
           | rchaud wrote:
           | Newspapers have some level of editorial oversight, governance
           | and fact-checking. Substack writers don't offer any of that.
           | I understand that that's part of the appeal, but I wouldn't
           | go as far as to say that Substack writers don't have their
           | own agenda or biases.
        
         | bollorior wrote:
         | Like the music industry a decade or so ago, the news industry
         | is now in a position where, rather than try and compete, they
         | are going to blame their customers and their competitors for
         | their own failings, and try and secure a special status whereby
         | they get paid in perpetuity for doing nothing because of their
         | supposed great importance to society.
        
           | karatinversion wrote:
           | This varies a lot - legacy media, sure. But the New York
           | Times is doing extremely well!
        
       | mensetmanusman wrote:
       | The simple fix is easy: FB and Google should be _strongly_
       | encouraged to offer paid versions of their services that are ad
       | free and tracking free.
        
         | TheEzEzz wrote:
         | I've been thinking about this. There's two reasons people don't
         | want to pay for free things: one, obviously, because they don't
         | want to spend money; but, two, because there's friction
         | associated with signing up to pay. If we made a law that said
         | services like Google have to charge at least $0.01 to use, then
         | we'd force providers and consumers to overcome the second
         | hurdle without much cost, and make it easier for the first
         | hurdle to be overcome over time.
        
           | 542354234235 wrote:
           | To add, it is hard for companies to resist double dipping.
           | Why have one revenue stream when you can have two? So you do
           | sign up and you come to find out you were still being
           | tracked, you still have ads, etc. You are paying and you are
           | the product. And since services on the internet are currently
           | very centralized, the few big players have little incentive
           | to offer a true paid service without worrying that anyone
           | else can break into the game and really disrupt their market
           | share.
        
         | marcosdumay wrote:
         | How do they not track you if when they must verify that you
         | paid?
        
       | fwn wrote:
       | They argue that the centralization of advertising forces almost
       | all companies to offer paid services and that those services lead
       | to the overall online experience being more expensive.
       | 
       | They conclude that "we should recognize the trade we've made from
       | ad-subsidized media to ad-subsidized search and social
       | networking", which I guess is a well-intended statement but
       | somewhat obvious, right?
       | 
       | Hacker News threads are filled with users arguing that they
       | gladly pay a lot just to avoid advertising.
       | 
       | Their last sentence
       | 
       | > Perhaps now we can forge a better understanding of the value of
       | content. It costs money to produce, so it should also cost money
       | to consume.
       | 
       | I think is important, but maybe not for their reasons. Current
       | paid services are sometimes very overpriced, which is partly
       | caused by the lack of easy and scalable micro-transactions and a
       | missing understanding of what a specific service might be worth.
       | On the other hand there are some great services that get
       | underused because users don't think the up-front cost are
       | justified.
       | 
       | The turn to subscriptions that we see in random tiny auxiliary
       | applications is a great example of that. The developers of a
       | small CBT-App I used for a bit thought they were worth 8 euro a
       | month. They tried it a few months and then gave up, largely
       | because they apparently failed to find a shared understanding of
       | their value with their users.
        
         | yoz-y wrote:
         | > Hacker News threads are filled with users arguing that they
         | gladly pay a lot just to avoid advertising.
         | 
         | It is also filled with comments gist of which is "paywalled,
         | didn't read".
         | 
         | I think both models have their strengths and ultimately are not
         | meant for the same audiences. Which is also why mixing the two
         | in the same product is tricky.
        
           | Nextgrid wrote:
           | Paying a subscription for a single article is not worth it,
           | and that's purely on monetary cost and not even accounting
           | for the time it takes to fill the subscription form and then
           | to cancel (and some newspapers make it extremely difficult to
           | cancel).
           | 
           | If there was a universal system where people could pay ~1$ in
           | one click without having to fill in a form or provide any
           | personal data (to reduce the risk of spam), I'm sure most
           | people would happily pay.
           | 
           | On the other hand, for a single product that you use
           | significantly (like a social network) it makes sense to pay a
           | subscription as opposed to having your time, attention and
           | privacy compromised by ads.
        
             | throwaway3699 wrote:
             | There is no safe way to do microtransactions without also
             | forking over some kind of personal data. How do you prevent
             | identity theft in that world? I would go as far as to say
             | the current Ads model is more private that a subscription
             | or microtransaction based world.
             | 
             | Cheap. Private. Low-friction. Pick two.
        
               | bollorior wrote:
               | There isn't a technical limitation here. If in 2001 you
               | had said that web content would be paid for by multiple
               | auctions for advertising space between data brokers who
               | know innumerable different facts about the reader, such
               | as their recent browsing history, purchases, demographic
               | info, _happening in real-time while the page loads_ , it
               | would have seemed technically unfeasible. $100 billion in
               | annual revenue makes lots of things possible.
        
               | input_sh wrote:
               | Sure there is: https://coil.com/ https://flattr.com/
               | 
               | Pay one subscription, visit sites. If those sites have a
               | specific meta tag, add-on detects it, providing you with
               | access to paywalled articles. The longer the site keeps
               | my attention, the more of my subscription they get. They
               | don't have to know a single thing about me other than
               | "I'm using this service and I have a running
               | subscription". Service aggregates those micropayments
               | from their subscribers within a time frame and avoids
               | transferring small transactions and fees associated to
               | the website.
        
               | pedro2 wrote:
               | Also Brave Browser.
               | 
               | Yes, Brave has a mixed model for funding. If you don't
               | opt in into Brave Rewards, you can still fund sites using
               | your own money.
        
               | Nextgrid wrote:
               | I'm saying that a neutral third-party could be used to
               | broker the payments and keep the details for auditing
               | purposes.
               | 
               | I don't mind _someone_ having my details, I just don 't
               | want that someone to be a party incentivized to spam me.
        
               | throwaway3699 wrote:
               | Sorry, but how is that any different than the role Google
               | and Facebook play today? You're just proposing handing
               | _even more_ personal data over to what will become the
               | next generation of big tech monopolies.
        
               | Nextgrid wrote:
               | Compared to Google & Facebook, the neutral third party's
               | business model would be to process payments as opposed to
               | advertising, thus they won't have any incentives to
               | collect/misuse personal data beyond what's necessary to
               | provide the service.
        
               | throwaway3699 wrote:
               | I don't agree. Payment data are just as easily sold off
               | as you seem to think advertisement data is. The
               | incentives are the same, except one is pseudo-anonymous
               | and the other is directly linked to your bank account.
        
             | maple3142 wrote:
             | Although I agree a simple system to make it easier to pay
             | small amount of money would help, I think $1 is not
             | everyone would accept easily. Maybe regional pricing is
             | necessary.
        
           | bollorior wrote:
           | I mean, you've just outlined the way that newspapers'
           | business model is delusional and broken. Lots of people are
           | prepared to pay them for something they make, but they have
           | decided that they're only prepared to accept money in a
           | specific way and on specific terms. In fact, most paywalls
           | assume that that specific news outlet is the most important
           | one in your life. None of them are prepared to offer you a
           | plan based on the more realistic scenario that you
           | occasionally want to read something of theirs of particular
           | interest, but don't want their take on every story, nor their
           | particular curation of what to read on a given day.
        
             | jeremyjh wrote:
             | Great point. If there were a service I could subscribe to
             | that would give revenue to content producers in a common
             | network based on page views I'd be interested. I like to be
             | able to follow links in news feeds to read particular
             | articles but since they may be in dozens of different
             | publications there is no way I'm going to subscribe to just
             | any one of them.
             | 
             | edit: maybe this is what Apple News is? I can read lots of
             | articles but have to go in through that portal, I can't
             | click links on Reddit. Sometimes I do go into Apple News
             | and find the same article but that is time consuming and
             | inconvenient and often it isn't there.
        
           | input_sh wrote:
           | I'm happy to pay for subscriptions on sites I know bring
           | value to me over time.
           | 
           | I'd never want to start/stop a subscription for a single
           | article I randomly come across, and I have never stumbled
           | upon a link that allows me to pay a buck or two to access
           | this specific article I clicked on without starting a long
           | term commitment with a site I've never heard of before.
        
           | bsder wrote:
           | > It is also filled with comments gist of which is
           | "paywalled, didn't read".
           | 
           | I object mostly due to "free for me(FAANGS) but not for thee.
           | 
           | Said article is available to the Googlebot or to Facebook but
           | not normal mortals.
           | 
           | If you want to be behind a wall, fine, be behind the wall--
           | that _is_ your prerogative. But the problem is that these
           | articles clutter up my search results and I _can 't remove
           | them_.
        
         | dividedbyzero wrote:
         | > Hacker News threads are filled with users arguing that they
         | gladly pay a lot just to avoid advertising.
         | 
         | In my experience, quite a few people say such things elsewhere
         | as well, but if you actually give them the opportunity to do so
         | (even if it's not "a lot", but actually a pretty small fee),
         | such offers tend to perform badly, even among the people who
         | initially requested such a tier, unless ads are very, very
         | intrusive (Youtube of late might be such a case) or it's
         | bundled with other, actually useful functionality, more content
         | etc., or rolled out as an increase of existing pricing instead
         | of a separate offer people have to actively pick (risky in
         | itself).
         | 
         | People in general appear to be much more price-conscious when
         | it comes to such things than they themselves seem to realize.
        
           | skinkestek wrote:
           | > In my experience, quite a few people say such things
           | elsewhere as well, but if you actually give them the
           | opportunity to do so (even if it's not "a lot", but actually
           | a pretty small fee), such offers tend to perform badly, even
           | among the people who initially requested such a tier,
           | 
           | I used Blende and was ready to spend quite a bit more on it,
           | but they changed their rules and also had do little relevant
           | content that at some point I gave up.
           | 
           | Recently found out one of the linux magazines sell digital
           | articles as well as full digital so I will be probably be
           | spending some money there, both for usefulness, entertainment
           | (yep) and to support a good cause.
        
           | orange_tee wrote:
           | It's probably psychology. For example, myself quite frugal, I
           | would probably not pay explicitly to remove ads. But if you
           | raised my internet subscription by $1.50/month, with the same
           | intent, I wouldn't bat an eyelid.
           | 
           | It's all about putting the price in context.
        
             | ghaff wrote:
             | I also just don't want the mental overhead of deciding
             | which of my 20 subscriptions I'm getting value from. Yes, I
             | used to have that to some degree with magazine
             | subscriptions. But most Internet subscriptions actually
             | tend to be pricier for less content--probably in part
             | because so few people pay you need to charge those who will
             | a fair bit to make it work.
             | 
             | I also observe that I do get some free newsletters and my
             | usual pattern is I read them regularly for a bit and then
             | they go into being read less and less frequently. (Which
             | was admittedly often my pattern with magazines as well.)
        
           | nindalf wrote:
           | Yeah, I'm that guy. I would prefer not to see ads and claim
           | that I would pay for the privilege. Ads on YouTube didn't
           | used to bother me but as they ramped up the number of ads on
           | each video I couldn't take it anymore ... until I saw the
           | price of the Youtube Premium subscription. I balked at paying
           | so much for the "minor inconvenience" of seeing 5 ads with
           | each video. I figured I'd just watch less video instead.
           | 
           | Side note, Youtube Premium includes music that I wouldn't
           | have used, so maybe the cost of the service makes sense for
           | people who use that.
        
             | rightbyte wrote:
             | Ye there is a huge prize difference between what Youtube
             | gets for you nominally watching the adds and what you have
             | to pay to not get any adds.
        
               | eek04_ wrote:
               | Using public numbers (references below):
               | 
               | The average YouTube user (>18yo) spends 41 minutes per
               | day on YouTube. Let's guess that an average view duration
               | is 10 minutes (~80% of an average video of 11.7 minutes).
               | That gives us 4 video views per day.
               | 
               | The average per view is $0.18, so $0.72 per day. Multiply
               | by 30 to get a month, and you end up with $21.60.
               | 
               | YouTube Premium is $11.99/month. So yes, there's a huge
               | prize difference - the advertising revenue would be ~$10
               | more than the YouTube Premium price.
               | 
               | https://blog.hootsuite.com/youtube-stats-marketers/
               | 
               | https://www.statista.com/statistics/1026923/youtube-
               | video-ca...
               | 
               | https://influencermarketinghub.com/how-much-do-youtubers-
               | mak...
        
               | rightbyte wrote:
               | I think that might be way off. Most adds are skipped. And
               | 18/1000 is 1.8 cents not 18 cents.
               | 
               | "On Average the YouTube channel can receive $18 per 1,000
               | ad views. This equates to $3 - $5 per 1000 video views."
               | 
               | I.e. 0.3 to 0.5 cent per video of which Google pockets
               | 68%:32% which gives about 0.2 cent per video for Google
               | per video view.
               | 
               | The first stats site says about 9 views per visit and
               | day, so 9 videos a day is about 1.8 cent, times 30 days
               | is 54 cents.
               | 
               | A year would be 6.5USD for the average user - about half
               | a month of Premium.
        
               | Theodores wrote:
               | The income YouTubers get from the paying customers is
               | nothing. A rounding error. I don't have a link for that.
        
               | eek04_ wrote:
               | Yes. As I've said elsewhere - very few people want to pay
               | their way out of ads - in this case, buy YouTube Premium.
               | 
               | Newest public data I can find says there are 20 million
               | YouTube Premium subscribers. There's 2 billion monthly
               | actives on YouTube - ie, 99% are not YouTube Premium
               | subscribers.
               | 
               | https://variety.com/2020/digital/news/youtube-
               | tops-20-millio...
               | 
               | https://www.youtube.com/intl/en-GB/about/press/
        
             | jeremyjh wrote:
             | uBlock Origin extension (and I'm sure others) in chrome
             | blocks all youtube ads. I am always dismayed when I see ads
             | in the YT mobile app, which I don't use often because I
             | haven't seen them on desktop in years.
        
               | dividedbyzero wrote:
               | I guess mobile is where most people use Youtube (by a
               | very, very generous margin, too); for me, it's on an
               | Apple TV, which also can't run adblockers. On mobile,
               | even with DNS-based blocking, I wasn't able to block
               | Youtube ads in the iOS app.
        
               | jeremyjh wrote:
               | Ah, thats a bummer. I'd thought about trying out Pi-hole
               | to block ads on our mobile devices and smart TV.
        
             | drcoopster wrote:
             | I'm a long-time Google Music subscriber (at the original
             | $8/mo price point) and had no idea that it even came with
             | YouTube Premium until I realized I hadn't seen any YouTube
             | ads in years.
        
         | aahortwwy wrote:
         | > It costs money to produce, so it should also cost money to
         | consume.
         | 
         | An awfully strange perspective from a business-oriented news
         | organization.
        
         | GekkePrutser wrote:
         | > Hacker News threads are filled with users arguing that they
         | gladly pay a lot just to avoid advertising.
         | 
         | True, and I _did_ before. I had a subscription to Ars Technica
         | and a few other sites like Tweakers in the Netherlands (a big
         | local tech site).
         | 
         | But, what I found lately was that these tech platforms were
         | alienating me. They're trying to reach a wider audience and as
         | such are delivering much less of interest to me. Much less
         | 'deep dives' than before and more 'phoned in' articles and
         | press release copy/pastes. And in the case of Tweakers are
         | _still_ delivering trackers like Google Analytics and Scorecard
         | Research even to paid subscribers. Both sites also changing
         | their design to be more visual and thus reducing content on the
         | screen, which forces even more scrolling to see everything.
         | 
         | So I actually dropped my subscriptions. I still have the lowest
         | tier with Tweakers but they're dropping that soon so I won't
         | renew. I still adblock anyway because I don't want to be
         | tracked (and yes I know it's not fully effective).
         | 
         | It just feels like every site wants to grow too big and widen
         | their audience. They're no longer happy with being a small
         | niche outfit, which waters down their value to me.
         | 
         | I notice this especially because of Hacker News. Because it's
         | still a niche site. Every day I find a few 'pearls' here that I
         | don't see anywhere else. Whereas the other sites are forcing me
         | to dredge through crap I'm not interested in with less and less
         | interesting pieces in between.
        
         | sammorrowdrums wrote:
         | Incidentally I started paying $5/ month each to two
         | micropayment platforms. The first Coil[1] uses Interledger
         | micropayments protocol, which is cool because it is easy to
         | both monetise your content, and is decentralized in terms of
         | payment providers and receivers. I get payed into an uphold
         | wallet, in Fiat currency. It pays out based on time on page
         | mostly and has Imgur, Newgrounds and Twitch using it, and lots
         | of blogs. Downside is for mobile where you can't run browser
         | plugins you have to use their custom FF fork browser Puma.
         | 
         | The second one Scroll[2] is a centralised one. That has bigger
         | names attached and removes ads from things like The Atlantic
         | and Bloomberg. It shows you a breakdown of where your monthly
         | fee is split.
         | 
         | I love not receiving ads, and I hope that this tech pans out,
         | but I am only doing it as an experiment so far. Personally I
         | would prefer Coil and its underlying protocol to succeed. But
         | it is highly possible these all fail. At least I am avoiding
         | ads, while still funding content. It shows promise.
         | 
         | - [1] https://coil.com/
         | 
         | - [2] https://scroll.com/
        
           | sammorrowdrums wrote:
           | I've written more about it here:
           | https://sammorrowdrums.com/going-ad-free-with-micropayments
        
       | rozim wrote:
       | Seems like Craigslist should be added to the list, as they hurt
       | the classified ads business.
        
       | htk wrote:
       | Misleading title and argumentation. False Cause fallacy being
       | used to attribute paywalls to Google and Facebook.
        
       | h0nd wrote:
       | >News organizations, for example, didn't charge readers, in the
       | misguided hope that more eyeballs on their stories would bring in
       | more revenue from the banner ads they displayed.
       | 
       | Which part of this is misguided? That is exactly how it works.
       | The more ads they can show, the more they are paid.
        
         | bollorior wrote:
         | Newspapers made a huge strategic error in how they approached
         | advertising, which ultimately resulted in much of their value
         | being essentially given away to Google.
         | 
         | It used to be the case that much of (for example) the New York
         | Times' advertising value came not just from the number of
         | eyeballs, but from the specific nature of those eyeballs. Being
         | able to target a specific category of people who read the NYT
         | (they can afford the paper, they are likely to live in New
         | York, they know long words, they have a specific worldview,
         | etc) is incredibly valuable to advertisers. Market segmentation
         | by publication is very powerful - even knowing that a viewer
         | doesn't have much money, or hates buying things, or is cynical
         | about advertising is more valuable than not knowing anything.
         | It's the reason that so many niche magazines exist. Advertising
         | to someone who cares about a very specific hobby is worth a
         | lot. It's also the reason that most printed publications aren't
         | free. Many could be if you take a simplistic view of the
         | economics. However they would dilute their audience to the
         | point where it would become less valuable to advertisers. Vogue
         | advertises to people who want to look at fashion photos enough
         | to pay $9 or whatever to do so.
         | 
         | With the internet, two things changed. Firstly the fact that
         | anyone in the world could read a given article for free, meant
         | that the average eyeball on a NYT article was much less 'NYT-
         | reader-ish' than an eyeball on a printed page of the paper.
         | Secondly, tracking and analytics meant that there was much more
         | valuable and monetizable information about that reader than the
         | fact that they are a NYT reader. Information like all the other
         | things they have looked at, what they've recently bought, what
         | apps they have installed, the content of their emails. Only the
         | big tech companies and data brokers have this info. The data
         | that the NYT has on you is trivial in comparison.
         | 
         | It didn't have to be this way. Newspapers could have ringfenced
         | their own data and sold ads in a way which kept them in
         | control. As a side effect it would have been better for their
         | readers' privacy. They failed to understand their own business
         | as well as Google did.
         | 
         | Now consumers are being blamed for this, for 'making the wrong
         | choices'. I resent this for several reasons. Firstly it is an
         | argument which denies the nature of reality. It is analogous
         | with telling people they shouldn't shop at Wal-Mart, because
         | local businesses will close. The solution is to change the
         | rules to optimize for the things that we care about. Not to
         | rely on the unlikely event that lots of people with limited
         | resources will all make altruistic decisions to protect the
         | nebulous thing that you care about. Secondly these newspapers
         | set themselves up as society's only defenders of liberty and
         | truth against the forces of darkness. In fact, a lot of them
         | are full of propaganda, gossip and clickbait. Some of the $5
         | newsletters are in a class above almost everything in these
         | newspapers. The people writing them are (typically) experts on
         | one topic, they love that topic passionately, they have no
         | particular axe to grind and they have much incentives to make
         | something high quality.
        
           | h0nd wrote:
           | Thank you for your very well observed and written reply.
        
           | nerdponx wrote:
           | _The solution is to change the rules to optimize for the
           | things that we care about._
           | 
           | I totally agree with everything you've said here, but I
           | always get stuck on this part. What rules should we even
           | change, and how should we change them?
        
             | bollorior wrote:
             | I don't know - the problem with complaints like 'Wal-mart
             | are destroying small, local businesses' is that although
             | many people agree that Wal-mart is bad, often no one is
             | sure exactly what is bad about Wal-mart.
             | 
             | Employee conditions, monopolistic practices to squeeze
             | suppliers and city layouts and zoning are all already
             | regulated in principle. But what if it's something much
             | more nebulous? Attempts to intervene for 'atmosphere',
             | 'niceness', 'tradition' and so on seem doomed to be either
             | useless or lead to unintended consequences.
             | 
             | But just trying to understand and be honest about what it
             | is we want can be a huge step forward!
        
             | h0nd wrote:
             | Interestingly, I was on the verge of addressing this one
             | specific sentence too. Especially, in the light of what
             | was/is happening in Australia.
             | 
             | Generally, I prefer to act for the things we care about
             | than changing the rules to optimize for... However, this is
             | a huge topic in itself that can not be dealt within a few
             | sentences.
        
         | drdec wrote:
         | I believe the author is saying that the misguided part was the
         | idea that they would get more revenue from banner ads than they
         | would through subscriptions.
        
           | h0nd wrote:
           | Well, that is a different statement than what he is saying.
        
       | readflaggedcomm wrote:
       | No, not all my "media" was subsidized by ads before the internet.
       | The author also fails to support the title, other than to weakly
       | imply that somehow excluding ads on Netlifx has something to do
       | with increased ad revenue on Facebook.
        
         | mrweasel wrote:
         | Sports was the first think that came to mind when reading the
         | article. True, previously TV based ads where worth more, and
         | could help pay for licensing right, but those licensing fees as
         | also balloned and consumers have to pay more directly.
         | 
         | Sports is one area of media that will truly be disrupted as
         | we're already pushing the limit of what people will pay and
         | advertising is no longer able to pay the difference.
        
           | dec0dedab0de wrote:
           | Especially ufc, I thought the only reason ppv could be so
           | expensive was because people were having parties to cover it.
           | I can't believe so many people paid so much during the
           | pandemic.
        
             | oarsinsync wrote:
             | When there's nothing else to do, I can see people who are
             | bored and lonely increasingly likely to spend money on
             | something that they used to enjoy pre-pandemic in order to
             | try and gain some enjoyment in an otherwise pretty
             | depressing situation.
        
         | anon98356 wrote:
         | I think you have your cause and effect the wrong way around
         | there. The argument put forward is that Netflix is forced to
         | use a subscription model because Facebook and Google have
         | almost complete control of the advertising market.
         | 
         | In the specific case of Netlfix this probably isn't true as
         | their business model is an online version of a business that
         | already charged a subscription (cable TV).
         | 
         | However in businesses that traditionally relied on advertising
         | e.g. the New York Times as mentioned in the article, the
         | transition to the internet is leading to more upfront charging
         | i.e. Paywalls because they aren't getting the ad revenue
         | required to offer their services for free.
         | 
         | My personal take from the article isn't that all content use to
         | be supported by ads (although I would suggest that a lot more
         | of it was than most people realise). The issue is that the near
         | duopoly Facebook and Google have on web advertising, mean those
         | producing the content can no longer rely on advertising to fund
         | themselves.
         | 
         | As a result we are seeing more and more paywalls being put up
         | to fund these businesses. The potential end result of this is
         | that finding content will continue to be free and probably even
         | get easier. Finding content you can consume for free however,
         | is likely to get a lot tougher.
        
           | readflaggedcomm wrote:
           | Netflix's business is an online version of their old
           | business, which was a mail-in version of Blockbuster.
           | 
           | No ads were involved in take-home videos, that I recall,
           | other than late attempts at unskippable promos by the studios
           | who released the movies themselves (that was after I gave up
           | renting videos).
           | 
           | I don't see any causal relationship at all.
        
           | fakedang wrote:
           | Just a question, what's stopping NYT from using their own
           | native ad experience embedded into their web page instead of
           | relying on Google and Facebook? It's not like building an
           | onsite tracking ad is secret stuff, is it? Rather, if ads are
           | going to be better than those on Google and Facebook, they
           | could charge a premium simply for eyeballs right?
        
         | mattl wrote:
         | Other than PBS/BBC, what other media isn't subsidized by ads?
        
       | villasv wrote:
       | I understand the bickering between media and social networks.
       | Aggregators have disrupted the standard media business and a
       | clash was inevitable.
       | 
       | Including Substack in the fight, on the other hand, is pathetic.
       | One would expect journalists to support each other and Substack
       | is a tool _tailored for them_.
        
         | u678u wrote:
         | I like the idea of substack, but realistically the most popular
         | journalists will be the ones with the biggest stunts and
         | clickbait. I just want a plain newspaper that does a lot of
         | good reporting without getting too political, seems too much to
         | ask these days.
        
         | snicksnak wrote:
         | Most of the corporate press hate substack and think it's
         | beneath them, I saw it being labeled as "onlyfans for
         | journalists". That's coming mostly from mediocre journalists
         | who envy substack writers with a huge profile and try to
         | demonize them. But it also comes from institutions, like the
         | UCLA information studies professor who tried to vilify substack
         | writes. Matt Taibbi wrote a response worth reading
         | https://taibbi.substack.com/p/in-defense-of-substack
        
       | dgudkov wrote:
       | Google and Facebook have attributes of "virtual" governments.
       | Similarly to an IRL government, they provide to citizens
       | identity, protection of assets, and policing. From that
       | perspective, their ad-based monetization is indirect taxation.
        
       | wwww4all wrote:
       | Basically, the legacy establishment media is complaining about
       | the new establishment social media.
       | 
       | Same thing as the the obsolete horse and buggy industry
       | complaining about the automobiles taking up all the street space
       | and causing traffic.
       | 
       | The establishment media got big, fat and lazy with their monopoly
       | and selling limited ad space.
       | 
       | When the ads space became infinite in the web, they didn't
       | innovate and pivot to web technologies.
       | 
       | Google and Facebook innovated web technologies and leveraged
       | their tools to filter and target valuable audience attention
       | space.
       | 
       | The establishment media is obsolete and no amount of complaining
       | is going to change the dynamic of the web. All they can do is
       | talk about their high school glory days of scoring 5 touchdowns
       | in high school championship game.
        
       | collaborative wrote:
       | What I truly miss is a competitor for both Google and Facebook.
       | McDonald's has Burger King. Who do we go to when Google and
       | Facebook overcharge us for advertising? The problem here is lack
       | of competition
       | 
       | Online advertising is by itself a great thing. In the past, only
       | the likes of Unilever could afford to run ads on TV and
       | Newspaper. That was because in order to convert they needed not
       | just ads and an online presence. They literally needed to be on
       | the shelves of every major shop so that the customer could
       | complete their advertising journey
       | 
       | I can see a competitor to Google materializing in the coming
       | years due to Google's increasing difficulty to track user
       | behavior. But I'm not so sure about Facebook. The only hope there
       | is that platforms (Apple, Google and browsers) eventually force
       | FB to become a paid service by completely disabling its tracking
       | scripts.. which is unlikely
        
         | marshmallow_12 wrote:
         | as a browser, duckduckgo works a lot better for me then google.
         | try it. you may still need google occasionally for specific
         | searches and to cross reference search results, but i find it
         | highly satisfactory. Remember, DDG is American-based and even
         | I, a UK resident can use it well.
        
           | xdrosenheim wrote:
           | Unless you count that one time I accidentally searched for
           | weather details on my watch, I have use Google search ONCE
           | this year. DDG is absolutely fine right now. And again,
           | unless you count my Android Auto (Google Maps) searches, I
           | have use Google search maybe 20 times since August 2020.
        
         | justapassenger wrote:
         | > What I truly miss is a competitor for both Google and
         | Facebook. McDonald's has Burger King. Who do we go to when
         | Google and Facebook overcharge us for advertising? The problem
         | here is lack of competition
         | 
         | You do realize that Facebook and Google are separate companies
         | that compete with each other, same as McDonald's and Burger
         | King?
         | 
         | They need more competition, that's for sure. But they do
         | compete with each other, same as McDonald's and Burger King.
        
           | fakedang wrote:
           | They compete in the same market (digital ads) but provide
           | different utilities for the consumer, hence aren't
           | competitors when it comes to user attention. Google provides
           | a search engine, GSuite stack and other free products,
           | YouTube, etc. Facebook provides a social network and networks
           | to connect with their families. There isn't a meaningful
           | competitor for either in either space. And most companies
           | simply retain two marketing budgets - one for Facebook and
           | one for Google.
        
             | xtracto wrote:
             | Exactly, it's like with the Cable providers "competition".
             | They theoretically "compete" because they sell the same,
             | but in reality, geographical availability is set in a way
             | that they are focused on servicing different demographies
        
         | dotancohen wrote:
         | > What I truly miss is a competitor for both Google and       >
         | Facebook. McDonald's has Burger King. Who do we go to       >
         | when Google and Facebook overcharge us for advertising?       >
         | The problem here is lack of competition
         | 
         | Forget advertising. I was recently passed up for employment
         | because I don't use Whatsapp.
         | 
         | And no, I do not consent to Whatsapp's terms of service even if
         | I could carry a second burner phone.
        
           | ysopex wrote:
           | Can you provide more details on this? I decline to use a
           | number of apps supported by Facebook and Google but have yet
           | to have anyone refuse to hire me because of that.
        
         | Doctor_Fegg wrote:
         | > only the likes of Unilever could afford to run ads on TV and
         | Newspaper
         | 
         | Yes, but there were plenty of other advertising opportunities
         | for smaller businesses. Local papers. Specialist magazines.
         | Local radio.
        
       | Lazare wrote:
       | There's a fair bit to agree with here, but...
       | 
       | First, one of the arguments being made here is that previous ad
       | revenue subsidised content, but now it subsidises social media,
       | so content must cover its costs directly.
       | 
       | One of the implications of that is that in the "old" system you
       | might get a bundle of content, some of which you liked and some
       | of which you didn't, but the whole thing was subsidised so you
       | didn't mind this, because you weren't _really_ paying for the
       | bits you didn 't like or didn't consume. And now in the "new"
       | system you have to pay full freight, so you're reluctant to pay
       | for things you don't even want.
       | 
       | In short, it's about people saying "I don't want to pay for an
       | entire cable package (or NYT subscription), I'd rather pay for
       | the exact content I want because it's cheaper overall, even if
       | it's more expensive per item".
       | 
       | But the example given is this:
       | 
       | > Yes, you get better, more convenient and largely ad-free
       | viewing -- but there's a good chance you're paying more for it.
       | The same applies to Twitter and Substack, where signing up to
       | just four writers' output at $5 a month each is already more than
       | the cost of a $17 New York Times subscription, which gives you a
       | greater breadth of coverage.
       | 
       | And that sounds like something quite different. If people are
       | paying $20/month in Substack subscriptions instead of $17/month
       | for a NYT subscription, they're not doing it to _save money_ ,
       | but because they think they can get better content that way.
       | 
       | In fact, at the moment I _am_ spending $20 /month across Substack
       | and Patreon for writing I care about, while the NYT is running a
       | promotion for an online subscription for $3/month for the first
       | year, then $8/month thereafter, but I'm happy with the value I'm
       | getting from Substack, and I wouldn't dream of paying for the
       | NYT, because in my view it's not even worth $3/month.
       | 
       | This isn't a money story, this is a quality story. And I don't
       | think it has much to do with ad revenue either.
       | 
       | Second:
       | 
       | > Perhaps now we can forge a better understanding of the value of
       | content. It costs money to produce, so it should also cost money
       | to consume.
       | 
       | Again, I'm paying $20/month or so to Substack (mostly) and
       | Patreon, so clearly I agree that paying money for content is (at
       | least sometimes) a good idea. However, I think this is just a
       | ridiculous, meaningless platitude.
       | 
       | Education and health care cost money to product; in most
       | countries at least some of both are provider at no direct cost to
       | consumers. Scarce natural resources (or broadcast spectrum) costs
       | little or nothing to produce, but should certainly cost money to
       | consume. And just because it cost you money to produce doesn't
       | mean anyone will (or should) choose to pay money to consume it.
       | 
       | I once came close to subscribing to Bloomberg, but eventually
       | decided against it, partly because it's _pricy_ ($35 /month!),
       | but also in large part because so much of their content is just
       | so poorly written and poorly researched. (Matt Levine is, always,
       | excellent, but he's very much the exception. And, of course, his
       | content is available for free, outside the Bloomberg paywall.)
        
         | rchaud wrote:
         | Businessweek used to be incredibly cheap, I remember having a
         | web+ print subscription back in 2014 and paid very little. I'm
         | legitimately shocked to see how much it costs now.
        
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