YouTube as well.
buddascrayon@lemmy.world 5 weeks ago
Yes, this is part of the business model. The goal is to get everyone addicted to their service, then jack the price up to profitable margins. It’s the same model Netflix and Amazon used. Bothe services lost money for over 10 years before becoming profitable.
Ilovethebomb@sh.itjust.works 5 weeks ago
toothpaste_ostrich@feddit.nl 5 weeks ago
Venture capitalism is what it’s called, I think
buddascrayon@lemmy.world 5 weeks ago
It is not venture capitalism. Though it is fueled by venture capitalism. I am describing the type of car and you are calling it gasoline. They’re most distinctly not the same thing.
However it should be noted there both a part of the same corrosion of our society. Just how automobiles that run on gasoline are a corrosion on our atmosphere.
Saledovil@sh.itjust.works 5 weeks ago
Venture capitalism is when you give somebody money to start a business in hopes that they make it big, giving you really valuable equity for relatively little money. What you’re thinking of is blitzscaling. Scale up in an unsustainable way in order to gain market dominance, so that you can use that to become profitable.
Knock_Knock_Lemmy_In@lemmy.world 5 weeks ago
You are correct. However, you can only really blitzscale with VC backing.