Re:Twitter Shares Slump After Report Says Google Won’t Make ...
by dragonwriter on Thursday October 06, 2016 @09:46AM
(#12652376)
If setting up and maintaining both as supported and fee-based infrastructure had no costs to Facebook and didn't hurt their advertising revenue per ad-supported user, sure, that would be the case.
In the real world, first, setting up and maintaining such a system would have substantial initial and operating costs (and possibly engagement costs, as it would complicate the UX), and, as opt-outs feom advertising would tend to be weighted toward the wealthier, more valuable (to advertisers), users, it would drop per advertising revenue per remaining advertising-supported user. So the buyout cost would have to be substantially more to break even.
In the real world, first, setting up and maintaining such a system would have substantial initial and operating costs (and possibly engagement costs, as it would complicate the UX), and, as opt-outs feom advertising would tend to be weighted toward the wealthier, more valuable (to advertisers), users, it would drop per advertising revenue per remaining advertising-supported user. So the buyout cost would have to be substantially more to break even.