From: allin
Social media platforms are undergoing significant shifts, particularly concerning user control, content monetization, and platform architecture. The dynamics of how content is created, shared, and valued are being challenged by emerging technologies like AI and evolving user expectations.
User Control and Content Monetization
The value of social networks like Facebook, Twitter, and Reddit is inherently tied to the content generated by their users [01:07:11]. Historically, these platforms have provided open APIs, allowing third-party developers to build tools and apps on top of their networks using user data or content [01:06:00].
API Monetization and User Backlash
Recent decisions by platforms to monetize their APIs have led to significant user backlash:
- Reddit Strike: In June 2023, 95% of Reddit’s subreddits went dark, either turning off new posts or going private, in protest of Reddit’s decision to charge for its API [01:02:23]. Some high-end Reddit apps faced costs of $20 million per year for data access [01:05:00]. Reddit’s CEO, Steve Huffman, stated the change was to ensure payment from companies training AI models on their data [01:05:07].
- Twitter API Changes: Similar changes occurred at Twitter, which also altered its API pricing impacting third-party apps [01:04:51]. In the early days, many users accessed tweets via third-party apps, but Twitter sought direct control over the user experience [01:06:40].
- Facebook Platform Changes: Facebook also deprecated its open API, killing off numerous third-party app developers like Zynga around 2012, to gain more control over its user experience and capture enterprise value [01:06:22].
The protests highlight that the true value of platforms like Reddit resides in their communities and the content created by individuals, rather than solely in the management team or shareholders [01:08:50]. The Reddit community has a history of collective action, notably in 2014-2015 when then-CEO Ellen Pao was removed after a user revolt [01:08:24].
“I think it’ll have a lasting effect in terms of investing in social network or social media type businesses where the users are generating so much of the value and have the ability to kind of communicate with one another and control where value ultimately falls.” [01:09:36]
Proposed Solutions for Creator Compensation
For platforms that rely heavily on user-generated content, a healthy revenue share for content creators is crucial [01:11:59]. Solutions proposed include:
- Allowing users to subscribe to subreddits for a membership fee, with revenue split with the moderators (mods) [01:13:58].
- Platforms buying out successful third-party apps or splitting revenue with them [01:14:13].
This shift suggests a move away from centralized platforms capturing all value towards individuals and “hubbed spokes” (like Reddit mods) having more control and direct monetization opportunities [01:14:44]. The launch of Project 92 by Meta (a text-based social network) with creator compensation in mind, is an example of this evolving landscape [01:12:31].
Impact of AI on Web Architecture and User Interaction
The rise of AI is prompting a re-architecture of the web, particularly concerning how users interact with information [03:48:47]. The traditional model of web search, characterized by “10 Blue Links” for information retrieval, is becoming suspect [03:32:57].
The “Race to Intimacy”
The new user interface (UI) and user experience (UX) will prioritize conversational UIs, described as “the race to intimacy” [03:26:27]. This means a shift from optimizing web pages to building more personalized and interactive interfaces.
Centralized vs. Fragmented Services
A key question is whether users will have independent relationships with specialized AI agents (e.g., a travel agent, a doctor’s office agent) or aggregate their services through a single super-agent [03:57:51].
- Arguments for Fragmentation: Users desire segregated relationships for privacy and control [03:59:10]. The idea of reducing humans to talking to one “thing” for everything is likely incorrect; instead, hyper-fragmentation with best-in-class use cases may dominate [03:59:19]. Users should retain control over their data and not give it up wholesale, as this could lead to a “social media problem writ large all over again” [03:59:32].
- Arguments for Aggregation: The benefits of general intelligence could allow a single AI assistant to solve vertical problems horizontally, similar to a personal assistant who knows a user well across various aspects of their life [04:39:55].
- Hybrid Approach: The most likely outcome is a hybrid model where a personal assistant handles general tasks but can “subcontract” work to specialized agents for specific, complex needs [04:40:51].
The web’s architectural shift is moving from web pages, advertising, and e-commerce to “knowledge extraction and intelligent agents” [04:51:20].
User Experience and Privacy
Being disconnected from social media platform X and its evolution | social media can provide a “flow experience” [00:04:08]. The trend towards hyper-fragmented digital relationships aims to give users more control and privacy over their data, preventing a single entity from monetizing them in multiple ways [03:38:29]. Users becoming “servers” of their own data, with individual IP addresses controlling information output across various service providers, is a potential future framework [04:06:50]. This allows users to “rent” their data to services through permission-based systems, rather than simply giving it away [04:11:58].
“The one thing I would tell people is do not give up all of your data to one thing who’s professing to be at all. They are going to lie to you and trick you and you’re going to have a social media platform X and its evolution | social media problem writ large all over again.” [03:59:32]