Sometimes we don’t quite process that billions of people on the planet get unlimited entertainment, voice and video calling, maps, restaurant reviews, weather, news, an encyclopedia, mail, messaging, and more for *free* just because 1-2% of us click an ad every now and then.
One mistake I often used to make at Justin.tv was offering a potpourri of business models (virtual goods, product placement, chat ads, contests, etc..). I was embarrassed to say Justin.tv would monetize with advertising when clearly that was the only answer. Own the simple business model.
We earn trust by stating our business model upfront – instead of ads, we monetize by charging directly. Directly charging creates high expectations from our members, and in aspiring to meet those expectations, we are held accountable to creating something you love and use.
excellent insight from Eugene Wei on Bankless podcast on the corrosive effects of the ad-based business model
The real villain here is Google.
Google found one of the very best business models of all time, skimming all the surplus profit off of the entire free open internet.
This is the natural end state of that process.