Enshittification is the process of squeezing money out of the customer base you built with initially cheap subscriptions / good service.
First the service is great for consumers (and likely bleeding money). People flock to it.
Then they use that consumer base to lure more suppliers to the platform. Phase two. The service is great for suppliers because it means easy access to a big customer base.
When both a lot of customers and a lot of suppliers are using the platform they start making changes that redirect revenue from both sides to the platform itself. Prices increase, fees for suppliers increase or their cut decreases, maybe they have to sign that they won’t sell under a certain price elsewhere, customers can’t use all things on the platform anymore without paying extra, they introduce ads, maybe exclusives, that stuff. Customers won’t leave because they are used to the platform, there are network effects (all my friends use it), sunk cost fallacies (I have paid them x dollars over the years and if I leave I keep nothing for it) in the case of gamepass they have maybe stopped buying games elsewhere and wouldn’t have a library at all if they lost access. Suppliers won’t leave because the customer base is huge and they have no other simple way to reach those customers. Both are the literal frog in slowly boiling water. “What’s a few more bucks a month, what’s a little additional ad before my game loads, what’s a few more % to MS when the alternative is losing all those customers”. That’s the enshittification part.
Don_alForno@feddit.org 3 weeks ago
Enshittification is the process of squeezing money out of the customer base you built with initially cheap subscriptions / good service.
First the service is great for consumers (and likely bleeding money). People flock to it.
Then they use that consumer base to lure more suppliers to the platform. Phase two. The service is great for suppliers because it means easy access to a big customer base.
When both a lot of customers and a lot of suppliers are using the platform they start making changes that redirect revenue from both sides to the platform itself. Prices increase, fees for suppliers increase or their cut decreases, maybe they have to sign that they won’t sell under a certain price elsewhere, customers can’t use all things on the platform anymore without paying extra, they introduce ads, maybe exclusives, that stuff. Customers won’t leave because they are used to the platform, there are network effects (all my friends use it), sunk cost fallacies (I have paid them x dollars over the years and if I leave I keep nothing for it) in the case of gamepass they have maybe stopped buying games elsewhere and wouldn’t have a library at all if they lost access. Suppliers won’t leave because the customer base is huge and they have no other simple way to reach those customers. Both are the literal frog in slowly boiling water. “What’s a few more bucks a month, what’s a little additional ad before my game loads, what’s a few more % to MS when the alternative is losing all those customers”. That’s the enshittification part.