YouTube disallowing adblockers, Reddit charging for API usage, Twitter blocking non-registered users. These events happen almost at the same time. Is this one of the effects of the tech bubble burst?

  • Rinox@feddit.it
    link
    fedilink
    arrow-up
    2
    ·
    1 year ago

    I think it’s a consequence of higher interest rates drying up VC money, meaning that tech companies now have to actually be profitable, rather than just grow.

    If the plan was grow now, profit later, then later has come

    • InverseParallax@lemmy.world
      link
      fedilink
      arrow-up
      1
      ·
      1 year ago

      Nailed it, investors are demanding profit increases, it’s not just interest rates (though they’re the main reason) but also the corporate tax cuts in 2018 basically dumped a ton of profit onto corporations because they repatriated all their offshore cash they’d been hoarding.

      That bump lasted 2 years, but the expectation of higher revenue is still there, it doesn’t matter if you got lucky at slots last month, if you make your normal salary this month investors will be absolutely pissed.

    • AgentOrange@lemmy.world
      link
      fedilink
      arrow-up
      0
      ·
      1 year ago

      This is also a great example of why higher interest rates aren’t automatically a terrible thing. In general, it’s probably a good sign for the economy that companies are expected to be profitable. Means resources are being used well. The limitless VC money kinda meant any dumb idea regardless of merit got funding.

      • pulaskiwasright@lemmy.ml
        link
        fedilink
        arrow-up
        0
        arrow-down
        1
        ·
        1 year ago

        This seems like a non sequitur: what is good about only profitable ventures getting funding? These unprofitable ventures were creating good jobs and providing enjoyable and sometimes useful products to consumers for low prices. So why is it good that funding is drying up?