Comment on Enshittification

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ultranaut@lemmy.world ⁨1⁩ ⁨week⁩ ago

One of the driving forces behind this phenomena is that business types value having that reoccurring revenue on the books more than “normal” revenue. If you have two companies with identical revenue but one of them gets it from customers locked in on a subscription, that company will be valued significantly higher. If you’re an exec or a big investor who owns a lot of stock in a company then you’re effectively incentivized to push the company towards that subscription based reoccurring revenue model because it will boost the stock price and make you richer.

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