Архив метки: Mark Zuckerberg

The psychological impact of an $11 Facebook subscription

Would being asked to pay Facebook to remove ads make you appreciate their value or resent them even more? As Facebook considers offering an ad-free subscription option, there are deeper questions than how much money it could earn. Facebook has the opportunity to let us decide how we compensate it for social networking. But choice doesn’t always make people happy.
In February I explored the idea of how Facebook could disarm data privacy backlash and boost well-being by letting us pay a monthly subscription fee instead of selling our attention to advertisers. The big takeaways were:
Mark Zuckerberg insists that Facebook will remain free to everyone, including those who can’t afford a monthly fee, so subscriptions would be an opt-in alternative to ads rather than a replacement that forces everyone to pay
Partially decoupling the business model from maximizing your total time spent on Facebook could let it actually prioritize time well spent because it wouldn’t have to sacrifice ad revenue
The monthly subscription price would need to offset Facebook’s ad earnings. In the US & Canada Facebook earned $19.9 billion in 2017 from 239 million users. That means the average user there would have to pay $7 per month

How ad-free subscriptions could save Facebook

However, my analysis neglected some of the psychological fallout of telling people they only get to ditch ads if they can afford it, the loss of ubiquitous reach for advertisers, and the reality of which users would cough up the cash. Though on the other hand, I also neglected the epiphany a price tag could produce for users angry about targeted advertising.
What’s Best For Everyone
This conversation is relevant because Zuckerberg was asked twice by congress about Facebook potentially offering subscriptions. Zuckerberg endorsed the merits of ad-supported apps, but never ruled out letting users buy a premium version. “We don’t offer an option today for people to pay to not show ads” Zuckerberg said, later elaborating that “Overall, I think that the ads experience is going to be the best one. I think in general, people like not having to pay for a service. A lot of people can’t afford to pay for a service around the world, and this aligns with our mission the best.”
But that word ‘today’ gave a glimmer of hope that we might be able to pay in the future.
Facebook CEO and founder Mark Zuckerberg testifies during a US House Committee on Energy and Commerce hearing about Facebook on Capitol Hill in Washington, DC, April 11, 2018. (Photo: SAUL LOEB/AFP/Getty Images)
What would we be paying for beyond removing ads, though?. Facebook already lets users concerned about their privacy opt out of some ad targeting, just not seeing ads as a whole. Zuckerberg’s stumping for free Internet services make it seem unlikely that Facebook would build valuable features and reserve them for subscribers
Spotify only lets paid users play any song they want on-demand, while ad-supported users are stuck on shuffle. LinkedIn only lets paid users message anyone they want and appear as a ‘featured applicant’ to hirers, while ad-supported users can only message their connections. Netflix only lets paid users…use it at all.
But Facebook views social networking as a human right, and would likely want to give all users any extra features it developed like News Feed filters to weed out politics or baby pics. Facebook also probably wouldn’t sell features that break privacy like how LinkedIn subscribers can see who visited their profiles. In fact, I wouldn’t bet on Facebook offering any significant premium-only features beyond removing ads. That could make it a tough sell.
Meanwhile, advertisers trying to reach every member of a demographic might not want a way for people to pay to opt-out of ads. If they’re trying to promote a new movie, a restaurant chain, or an election campaign, they’d want as strong of penetration amongst their target audience as they can get. A subscription model punches holes in the ubiquity of Facebook ads that drive businesses to the app.
Resentment Vs Appreciation
But the biggest issue is that Facebook is just really good at monetizing with ads. For never charging users, it earns a ton of money. $40 billion in 2017. Convincing people to pay more with their wallets than their eyeballs may be difficult. And the ones who want to pay are probably worth much more than the average.

Let’s look at the US & Canada market where Facebook earns the most per user because they’re wealthier and have more disposable income than people in other parts of the world, and therefore command higher ad rates. On average US and Canada users earn Facebook $7 per month from ads. But those willing and able to pay are probably richer than the average user, so luxury businesses pay more to advertise to them, and probably spend more time browsing Facebook than the average user, so they see more of those ads.
Brace for sticker shock, because for Facebook to offset the ad revenue of these rich hardcore users, it might have to charge more like $11 to $14 per month.
With no bonus features, that price for something they can get for free could seem way too high. Many who could afford it still wouldn’t justify it, regardless of how much time they spend on Facebook compared to other media subscriptions they shell out for. Those who truly can’t afford it might suddenly feel more resentment towards the Facebook ads they’ve been scrolling past unperturbed for years. Each one would be a reminder that they don’t have the cash to escape Facebook’s data mines.

But perhaps it’s just as likely that people would feel the exact opposite — that having to see those ads really isn’t so bad when faced with the alternative of a steep subscription price.
People often don’t see worth in what they get for free. Being confronted with a price tag could make them more cognizant of the value exchange they’re voluntarily entering. Social networking costs money to operate, and they have to pay somehow. Seeing ads keeps Facebook’s lights on, its labs full of future products, and its investors happy.
That’s why it might not matter if Facebook can only get 4 percent, or 1 percent, or 0.1 percent of users to pay. It could be worth it for Facebook to build out a subscription option to empower users with a sense of choice and provide perspective on the value they already receive for free.
For more big news about Facebook, check out our recent coverage:

Facebook shouldn’t block you from finding friends on competitors

Zuckerberg’s boring testimony is a big win for Facebook

Highlights and audio from Zuckerberg’s emotional Q&A on scandals

The psychological impact of an $11 Facebook subscription

Facebook retracted Zuckerberg’s messages from recipients’ inboxes

You can’t remove Facebook messages from the inboxes of people you sent them to, but Facebook did that for Mark Zuckerberg and other executives. Three sources confirm to TechCrunch that old Facebook messages they received from Zuckerberg have disappeared from their Facebook inboxes, while their own replies to him conspiculously remain. An email receipt of a Facebook message from 2010 reviewed by TechCrunch proves Zuckerberg sent people messages that no longer appear in their Facebook chat logs or in the files available from Facebook’s Download Your Information tool.
When asked by TechCrunch about the situation, Facebook claimed it was done for corporate security in this statement:
“After Sony Pictures’ emails were hacked in 2014 we made a number of changes to protect our executives’ communications. These included limiting the retention period for Mark’s messages in Messenger. We did so in full compliance with our legal obligations to preserve messages.”
However, Facebook never publicly disclosed the removal of messages from users’ inboxes, nor privately informed the recipients. That raises the question of whether this was a breach of user trust. When asked that question directly over Messenger, Zuckerberg declined to provide a statement.
Tampering With Users’ Inboxes
A Facebook spokesperson confirmed to TechCrunch that users can only delete messages their own inboxes, and that they would still show up in the recipient’s thread. There appears to be no “retention period” for normal users’ messages, as my inbox shows messages from as early as 2005. That indicates Zuckerberg and other executives received special treatment in being able to pull back previously sent messages.
Facebook chats sent by Zuckerberg from several years ago or older were missing from the inboxes of both former employees and non-employees. What’s left makes it look the recipients were talking to themselves, as only their side of back-and-forth conversations with Zuckerberg still appear. Three sources asked to remain anonymous out of fear of angering Zuckerberg or burning bridges with the company.
[Update: Recent messages from Zuckerberg remain in users’ inboxes. Old messages from before 2014 still appear to some users, indicating the retraction did not apply to all chats the CEO sent. But more sources have come forward since publication, saying theirs disappeared as well.]
None of Facebook’s terms of service appear to give it the right to remove content from users’ accounts unless it violates the company’s community standards. While it’s somewhat standard for corporations to have data retention policies that see them delete emails or other messages from their own accounts that were sent by employees, they typically can’t remove the messages from the accounts of recipients outside the company. It’s rare that these companies own the communication channel itself and therefore host both sides of messages as Facebook does in this case, which potentially warrants a different course of action with more transparency than quietly retracting the messages.
Facebook’s power to tamper with users’ private message threads could alarm some. The issue is amplified by the fact that Facebook Messenger now has 1.3 billion users, making it one of the most popular communication utilities in the world.

Zuckerberg is known to have a team that helps him run his Facebook profile, with some special abilities for managing his 105 million followers and constant requests for his attention. For example, Zuckerberg’s profile doesn’t show a button to add him as a friend on desktop, and the button is grayed out and disabled on mobile. But the ability to change the messaging inboxes of other users is far more concerning.
Facebook may have sought to prevent leaks of sensitive corporate communications. Following the Sony hack, emails of Sony’s president Michael Lynton who sat on Snap Inc’s board were exposed, revealing secret acquisitions and strategy.
Mark Zuckerberg during the early days of Facebook
However, Facebook may have also looked to thwart the publication of potentially embarrassing personal messages sent by Zuckerberg or other executives. In 2010, Silicon Valley Insider published now-infamous instant messages from a 19-year-old Zuckerberg to a friend shortly after starting The Facebook in 2004. “yea so if you ever need info about anyone at harvard . . . just ask . . . i have over 4000 emails, pictures, addresses, sns” Zuckerberg wrote to a friend. “what!? how’d you manage that one?” they asked. “people just submitted it . .  i don’t know why . . . they “trust me” . . . dumb fucks” Zuckerberg explained.
The New Yorker later confirmed the messages with Zuckerberg, who told the publication he “absolutely” regretted them. “If you’re going to go on to build a service that is influential and that a lot of people rely on, then you need to be mature, right? I think I’ve grown and learned a lot” said Zuckerberg.
If the goal of Facebook’s security team was to keep a hacker from accessing the accounts of executives and therefore all of their messages, they could have merely been deleted on their side the way any Facebook user is free to do, without them disappearing from the various recipients’ inboxes. If Facebook believed it needed to remove the messages entirely from its servers in case the company’s backend systems we breached, a disclosure of some kind seems reasonable.
Now as Facebook encounters increased scrutiny regarding how it treats users’ data in the wake of the Cambridge Analytica scandal, the retractions could become a bigger issue. Zuckerberg is slated to speak in front of the U.S. Senate Judiciary and Commerce committees on April 10 as well as the House Energy and Commerce Committee on April 11. They could request more information about Facebook removing messages or other data from users’ accounts without their consent. While Facebook is trying to convey that it understands its responsibilities, the black mark left on public opinion by past behavior may prove permanent.
If you have more info on this situation, including evidence of messages from other Facebook executives disappearing, please contact this article’s author Josh Constine via open Twitter DMs, josh@techcrunch.com, or encrypted Signal chat at (585)750-5674.
For more on Facebook’s recent troubles, read our feature pieces:

Highlights and audio from Zuckerberg’s emotional Q&A on scandals

Facebook restricts APIs, axes old Instagram platform amidst scandals

The real threat to Facebook is the Kool-Aid turning sour

 

Facebook retracted Zuckerberg’s messages from recipients’ inboxes

Facebook teen-in-residence defects to Google and launches Lies

 At age 17, Michael Sayman was Facebook’s youngest employee ever. Having already launched 5 apps, he wowed Mark Zuckerberg, earned a demo spot on stage at Facebook F8 conference, and scored a full-time engineering gig as the social network’s go-to teen. Over the past three years, he helped Facebook try to crack the middle school market with apps like the now defunct Lifestage. But… Read More

Facebook teen-in-residence defects to Google and launches Lies

Facebook Groups can now screen new members with a questionnaire

 Facebook is making good on Mark Zuckerberg’s promise to build community by improving admin tools for Facebook Groups. Now Group admins can establish up to three questions for people requesting to join their Group to answer. This lets admins screen potential members to ensure they’re the right fit for the group and will add constructively to the discussion, not just spam or troll… Read More

Facebook Groups can now screen new members with a questionnaire

WhatsApp’s ‘Status’ Snapchat clone hits 175M daily users in 10 weeks

 WhatsApp’s version of Snapchat Stories is already pulling in around 15 percent of the messaging app’s 1.2 billion users. Mark Zuckerberg today announced that WhatsApp Status now has 175 million daily users after only launching in mid-February. That’s made more impressive because Status lives in a separate tab of WhatsApp, instead of showing up at the top of the home screen. Read More

WhatsApp’s ‘Status’ Snapchat clone hits 175M daily users in 10 weeks