Digital life
fromHarvard Business Review
14 hours agoHow AI Is Threatening Platforms' Revenue Streams
Online activity and centralized digital services have created a platform-dependent society, influencing markets, labor, and consumer behavior.
WhatsApp is now rumored to be soon introducing a premium tier. This will be called WhatsApp Plus. It's said to offer several additional customization options to change the app theme, app icon, and accent colors, including 14 new icons and multiple color choices and interface elements.
Despite how modern it seems to be, the truth is that the subscription economy has been around for some time, surprisingly dating back to around 1800, with the first magazine subscriptions, or the subscriptions for fresh British milk, around 1860. Over the years, the of subscription-based companies has turned the subscription model into an ideal business strategy since it provides unique benefits. In the same way, the adoption of this model across multiple industries has led to negative repercussions for the general public.
Leading the pack has been the rise in agentic coding tools. These tools, such as Gemini Jules, Claude Code, and OpenAI Codex, are capable of writing entire programs and products. I put both Codex and Claude Code to the test, creating four plug-in add-on security products for WordPress using Codex, as well as a full-featured iPhone app using Claude Code.
Snapchat is adding a new way for creators to make money in the app, with creator subscriptions, which will enable Snap stars to generate direct revenue from their fans in-stream. Snapchat's subscriptions for creators will give popular Snapchat users the opportunity to monetize their content through exclusive offerings, while also experimenting with other forms of subscription offerings to maximize interest. As per Snap: Creator Subscriptions introduce a premium layer of connection directly into how Snapchatters already engage with creators across Stories, Chat, and replies.
Last October, PayPal an integration with OpenAI so that ChatGPT users could transact within the app. Apparently, PayPal is now ready to take that idea to other retailer chatbots. Of course, now that ChatGPT is making its foray into advertising , other LLMs and chatbots are bound to follow suit, if they haven't already done so. Walmart, for instance, rolled out ads in its generative AI agent Sparky earlier this month.
For example, CPA models tend to be very popular with on-demand apps or apps with subscription models based on, say, a free trial event. Examples of these include fitness apps (such as Peloton and Obe Fitness) or entertainment or VOD apps (such as Showtime, VUDU etc). In these instances, CPA is preferable as a performance model because it's easier to optimize towards a certain fixed price based upon fixed subscription fees and expected conversion rates.
Big TV networks and studios are finally shifting toward programmatic advertising - even for their linear TV spots. And this shift is attracting a new wave of advertisers and transforming what a typical TV ad break looks and feels like. For example, as reports, Comcast is starting to see net-new ad revenue growth from first-time TV advertisers. "The people coming in the door are small performance advertisers, but they've been doing social ads forever," says Travis Flood, Comcast Advertising's director of insights. "They don't have a TV ad."