From Cory Doctorow:

Here is how platforms die: First, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die.

https://www.wired.com/story/tiktok-platforms-cory-doctorow/

Some of it is because we had a decade of cheap borrowing which has come to an end and many of these platforms were never profitable.

The timeline split after harambe. This is known

I have a sinking feeling that these moves are not about money, but more about power and manipulation. If you squeeze these user bases such that the savviest users are forced out, those more likely to ask "Why?" about damn near anything, you will own access to a group of people that can be influenced to think/do/buy whatever the top management and/or majority shareholders want. If you lose a few million users, what does it matter if they were dissidents to your goals?

From everything I have observed, businesses are hunkering down for a recession in the next fiscal year. It explains the lay offs, the penny pinching, and puzzling decisions that look like business suicide.

For services that are free for users, advertising revenue and investment fund raisers are the only thing keeping them afloat. With banks like SVB getting seized by the FDIC, it's starting to scare investors. Advertisers are seeing the writing on the wall that people will stop spending as much as they used to. We are also probably seeing jacked up pricing across the board because businesses are taking what they can before it's gone.

So what's left? Squeeze users for money. Additionally, shed users that actually cost them money and these tend to be power users. The question, which everyone seems to be assuming is a foregone conclusion, is if this shedding strategy will end up killing the service. In reality, we don't know but the idealists would sure feel good if someone else ate their market share.

I'm just glad that federation is picking up steam in the social media space.

twitter was overvalued. reddit has made a lot of questionable business decisions over the last decade or so but their recent API change will be their death knell. it feel like a cash grab. I personally only use Twitch to watch Bob Ross reruns :P

The reality is that nothing is really dying and nothing is really changing. Twitter is still fully operational and other than a small hit nothing happened. Twitch already did a step back. For Reddit we'll see but only a really small percentage of reddit is using third party apps.

This Lemmy migration does feel like waaaaay more positive of a result than I ever expected from reddit getting worse.

I've always appreciated the idea of the fediverse, but mastodon and the twitter-style of social media has never appealed to me, and Lemmy used to be so tiny and niche, so I didn't invest much time in it until now. But this sure is nice, comparatively. I'm probably on here too much though!

We've reached the end of the VC-funded golden age where they are all now demanding a return on their investment, hence why the screws are now all getting tightened.

What happened with Twitch? I'm out of the loop there.

Doctorow's Enshittification describes it pretty much dead-on. It's basically the cancerous form of late-stage capitalism that we're living under now.

Some people have come up with the word "enshittification" to describe the basic cycle of modern web services.

The cycle consists of three parts:

1. You make the service that attracts new users by providing what they want. Often you do that at a loss, because your goal is to gain a big enough userbase for steps 2 and 3.
2. Once there's enough users, you shift to attracting commercial interests instead -- vendors if you're running a store, advertisers or celebrities or other "big clients" if you're a social network, etc.
3. Once both users and commercial interests are hooked, you can start tightening all the rules and switching completely to profiting yourself and your shareholders.

All these websites have almost always been net cash flow negative. They bleed venture capital to provide a service below cost in order to build a user base.

The problem now is interest rates have spiked. Rates have been basically zilch for much of the internet's history over the past 20+ years, so sites could actually operate for quite some time on super cheap debt that they almost never had to repay. And venture capital firms would just keep pouring money into the "next best thing".

Now that debt is rapidly becoming much more expensive to maintain, and those VC investors want their chunk of the pie back in their pockets. And they are going to extract it from every single one of these centralized services by whatever force is necessary. It's only just getting started, you watch.

They saw Lemmy becoming successful, corporate mistook Lemmy with Lemmings, and decided to go out Lemmings style.

...jokes aside, Cory Doctorow has a great text about that, called "Tiktok's enshittification". It's a four-steps process:

1. The platform is good for its users.
2. The platform abuses the users, to be good for its business customers.
3. The platform abuses the business customers, to claw back all value for itself.
4. The platform dies.

In my opinion it's also the result of management being disconnected from the platform that it manages, and not knowing fully the implications of their own decisions.

Well, while it is surprising it's all happening within a year or so, it's not unexpected at all.

They're ultimately for-profit companies. They have openly demonstrated the obvious truth that when push comes to shove, users don't matter to them, at least not as much as money. Our attention was the product.

These companies have proven time and time again that a quick moneygrab will win over retaining the people who make the site work. capitalism 101 baby.

I think this is "normal" and the previous status was a glitch due to the low interest rates. Investors threw money at tech companies and didn't care whether they made any money. Not any more. It's now "make money or go bust". I am not sayiny these new trends will make them money, but IMHO it's what's driving them

Big sites have made surfing the web so boring. I will end up spending the day on 2-3 sites. All this shake up will hopefully force me to look at more websites again.

The twitter thing is sad, but honestly not a huge deal. I rarely used it anyhow.

The reddit thing is depressing, since I've been a huge supporter and user of Apollo for many years. It feels like getting stepped on and I feel for the developer Christian Selig who devoted so much time and energy to the app.

I hope nothing happens to Twitch in the way that Twitter and Reddit have though, the small time streamers I follow and support won't survive a thing like that.

what happened with twitch?

It's not just tech companies like Reddit and Twitter, it seems like it's most companies. Ever since the COVID lockdowns prices have been going through the roof, you get less for what you pay for, they're laying off workers, and all while raking in record profits while also crying about how no one wants to work and how they can't afford anything because of the economy. I've never been more cynical about companies than I have been the last year.