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The enshittification of “enshittification”
(blog.bloonface.com)
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this post was submitted on 08 Aug 2023
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This magazine is dedicated to discussions on the federated social networking ecosystem, which includes decentralized and open-source social media platforms. Whether you are a user, developer, or simply interested in the concept of decentralized social media, this is the place for you. Here you can share your knowledge, ask questions, and engage in discussions on topics such as the benefits and challenges of decentralized social media, new and existing federated platforms, and more. From the latest developments and trends to ethical considerations and the future of federated social media, this category covers a wide range of topics related to the Fediverse.
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Indeed, while this can be true it doesn't have to be true. It's entirely possible to profit off of your users without being awful to them. Economics is not a zero-sum game, everyone can "win" from a transaction. Typically this happens because each party gets something from the other party that they value more than the other party does.
For example, I spent years on Reddit happily arguing with wrong people, deriving my "value" from just having fun interacting with folks about stuff. The server resources that Reddit expended supporting that were fairly trivial in dollar terms. Meanwhile Reddit earned a bunch of money by pretending to serve ads to my ad blocker and by selling information about me to AI trainers (or they would have if they'd thought of that before it was too late). None of that bothered me any, so they got something valuable to them from something nearly costless to me.
If Reddit had just stuck with that then everything would have been fine. Instead Reddit hired 2000 staff for some reason, requiring them to squeeze even more money out somehow, and the rest is history.
They hired 2000 staff because they were running one of the most highly-trafficked websites on the Internet, with hundreds of millions of users, something which unsurprisingly takes quite a lot of people to administer and maintain. Were Reddit to not invest in people and resources to keep the website running at that scale, you would not be able to use it in the way you enjoy and it would have nowhere near as much utility to you.
This is the entire point of the article that you missed - there are a shit-ton of costs in running a massive community that have to come from somewhere. Your approach is "well I don't think those costs are necessary". But they are.
They also spent those 2000 staff implementing image hosting, video hosting (poorly), a live chat feature nobody wanted, maintaining a mobile app that was inferior to several apps being developed by lone independent coders, and a bunch of other nonsense unrelated to the core experience of Reddit. Rather than being the best Reddit the could be they tried to poorly mimic Facebook and Instagram and other such social media sites.
The thing that killed Reddit was the unfortunately extremely common drive that corporations feel to grow, grow, grow grow all the time every quarter. Always must have more subscribers, more features, more income streams, more products, new markets.