Informative. I'd like to add that even before SpaceX as an airline company starts sends people and goods to Mars, they'll most likely start by send goods and people here on earth. Transportation of people and goods between continents would take mere minutes making same day delivery possible on a continental level.
Very easy to disagree. OpenAI is still in its infancy along with the others around it in its domain. They acquired Windsurf and brought on Jony Ive. Only time will tell us what they’re cooking but ads now or within the next 5 years will be a distraction for them.
An absolute truth here is that people will use and rotate between these LLMs fairly easy and quickly, subscribed or unsubscribed.
B2C products can be great without ads, Canva, Figma, Notion, Grammarly, Replit, Strava and many others - all great at what they offer & do, and don’t annoy the user with ads.
On the flip side, it took Spotify 15 years to reach profitability, they finally reached it due to subscriptions, not because of ads. 2023 premium subscription was 87% of revenue, ads made up 13%. I’ll bring up Netflix too because it took them 6 years to become profitable, ad revenue share was between 5% & 10%.
It’s difficult and unfair to compare B2C products because all are always different.
If anything OpenAI is signalling it wants to play a different game, given their recent moves this year alone.
Time will tell though, will be cool to see what OpenAI and others provide in the years to come.
I tend to agree but I think you're underestimating the growth OpenAI's products have achieved in a very short period of time, like 3 years? And now they are close to 1 billion in total users. This number will only go up and maybe even outpace Google's in the future. None of the products you mentioned have that kinds of users. Most people don't subscribe to ChatGPT Pro and OpenAI's other tools as they are also free. And this is why just having a subscription offer on the platform is kinda loosing money on the table for OpenAI. I agree with many things you say but I tend to believe (as Ben do) that the goal here should be to increase the (customer lifetime value) LTV or average revenue per user (ARPU).
You keep mentioning same thing "how does it makes money" after every few lines, just tell or stop mentioning it. It's very irritating, made me stop reading the post half way through.
👍🏻
Thank you!
Informative. I'd like to add that even before SpaceX as an airline company starts sends people and goods to Mars, they'll most likely start by send goods and people here on earth. Transportation of people and goods between continents would take mere minutes making same day delivery possible on a continental level.
Interesting! Who you're talking about?
Great piece , but I disagree on the ads part though. But only time will tell.
Thanks. Ads part? You meant me talking about OpenAI not introducing ads or something else?
Ben Thompsons stance that they must bring Ads.
Why do you disagree with that though?
Very easy to disagree. OpenAI is still in its infancy along with the others around it in its domain. They acquired Windsurf and brought on Jony Ive. Only time will tell us what they’re cooking but ads now or within the next 5 years will be a distraction for them.
An absolute truth here is that people will use and rotate between these LLMs fairly easy and quickly, subscribed or unsubscribed.
B2C products can be great without ads, Canva, Figma, Notion, Grammarly, Replit, Strava and many others - all great at what they offer & do, and don’t annoy the user with ads.
On the flip side, it took Spotify 15 years to reach profitability, they finally reached it due to subscriptions, not because of ads. 2023 premium subscription was 87% of revenue, ads made up 13%. I’ll bring up Netflix too because it took them 6 years to become profitable, ad revenue share was between 5% & 10%.
It’s difficult and unfair to compare B2C products because all are always different.
If anything OpenAI is signalling it wants to play a different game, given their recent moves this year alone.
Time will tell though, will be cool to see what OpenAI and others provide in the years to come.
I tend to agree but I think you're underestimating the growth OpenAI's products have achieved in a very short period of time, like 3 years? And now they are close to 1 billion in total users. This number will only go up and maybe even outpace Google's in the future. None of the products you mentioned have that kinds of users. Most people don't subscribe to ChatGPT Pro and OpenAI's other tools as they are also free. And this is why just having a subscription offer on the platform is kinda loosing money on the table for OpenAI. I agree with many things you say but I tend to believe (as Ben do) that the goal here should be to increase the (customer lifetime value) LTV or average revenue per user (ARPU).
Fair point
You keep mentioning same thing "how does it makes money" after every few lines, just tell or stop mentioning it. It's very irritating, made me stop reading the post half way through.
I don't know if this would be the case for others. But thanks for the feedback, will not make the same mistake again if this happened to you.
🤣🤣🤣🤣He wanted us to keep reading and indeed in the end he stated how SpaceX makes money
lol my bad. such a bad writer!