Over the previous 18+ months, Meta Platforms’ year-over-year revenue growth has plummeted (Meta stock), falling from over 45% in the first quarter of last year to a drop of 4% in the third quarter report released last week. Over the same time period, Snap Inc., the company that owns Snapchat, saw its growth drop by more than 60 percentage points. Major social media firms’ stock prices, including those of Snapchat, Pinterest, and Facebook owner Meta Platforms, are down an average of 60% this year as a result of investors’ general lack of confidence in the companies’ first efforts. Subscriptions have suddenly changed from a potential call option on a secondary revenue source to a necessity.
More and more, they are charging for premium features or content. At the end of the third quarter, more than 1.5 million users were paying a monthly membership fee to Snapchat in order to gain access to “exclusive, experimental, and pre-release” features including extended story viewing times and a bitmoji that effectively dresses up for Halloween. People are paying up to $24.99 per month on Twitch to watch others play video games with more “flair.”
Why pay for anything like that? Consumer buying patterns are more accurately put into perspective by the vast amount of time they spend on social media sites for streaming, gaming, chatting, and dating. We shell out cash for things like a luxury car, a unique paint job and license plate, or a turbo engine, whether it’s for fun, attention, or status. Nowadays, we commute by car for less than an hour on average each day, but we spend nearly seven hours each day on our ten favorite social networking apps.
Expect to be able to pay almost anyplace you might socialize and otherwise hang out online, even outside of traditional social media. You can already purchase subscription-based items on Alphabet’s YouTube, which witnessed a 2% decline in its own ad revenue in the third quarter compared to the previous year. Examples of these include YouTube Premium (ad-free plus music), and YouTube TV (streaming TV ...
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