So Microsoft is one of the most valuable companies in the entire world. They have a stranglehold on corporate America, power a huge the cloud infrastructure, hold one of the largest sources of telemetry/user data, and are the defacto standard of PC environments worldwide.
Why in the fuck do they need to pivot to ads? I’m genuinely curious. Even if they lost 50% of their entire business they would still be one of the most profitable companies in the world.
Because when you have shareholders, there’s no such thing as “we’re profitable enough”. Shareholders always demand more. Ads means more profit, at least in the short term. Next quarter profits are all that matter to public companies.
It’s not just that they demand more, they demand more/faster growth all the time. It doesn’t matter that the economy has slowed down to borderline recession, it doesn’t matter that they pretty much captured all the market they can, they still need to make more and more money every quarter otherwise they’re considered a failure even if they are one of the biggest companies in the world.
the shareholders don’t get that. the top managers, CEOs etc. get it. some of them may be shareholders as well, but that’s not how they fill their pockets.
I think it’s the same reason games offer a cash shop for things you can get in-game. Sure they’re making billions but why not billions plus ad revenue? I don’t agree with the practice but the answer always comes back to money.
@SuperSynthia@dvdnet62 Because for capitalism, profit is not the end, only a means to the end. The end is to accumulate sufficient capital to absorb all competitors and achieve total control of markets.
Yea but like, their competitors, when it comes to operating systems are Apple, which isn’t anywhere near small enough to be obtainable by anyone and Linux and Linux-Derivatives, which are also unobtainable due to their open source nature.
Not every larger company is automatically evil, just because they exist within a capitalist market. A lot of them are, sure. At least to some extent. But there still are privately owned enterprises that do have a conscience.
Also, calling them “capitalist” enterprises seems redundant.
@accideath I’m calling them capitalist enterprises to emphasize that they are capitalist enterprises. They accumulate capital. That is what they are and defines what they do.
A capitalist enterprise does not decide it has enough and can retire and take up gardening. It is not a person. It does not have a conscience.
A privately owned enterprise can. Publicly traded ones can’t. A privately owned enterprise also doesn’t need to make more money, if the owner doesn’t want that. A publicly traded company that has to answer to its shareholders has to make more money and to keep growing to appease said shareholders. If you don’t have shareholders you don’t have to do anything like that. That doesn’t mean, of course, that any privately owned company is automatically good – many aren’t – but it does mean that they have the capability to not be evil.
I’d believe Google has a larger data collection as it’s includes both google hardware and software products.
Google can also connnect the dots between an extreme amount of user data and services.
Isn’t it obvious? Start Menu is being used by every windows user but is not generating any revenue
Serving ads will enable them to better support the platform and provide more advanced features. Ad supported version is better than making it a subscription like some third party apps have done. Start8 I think, basic copy of Microsoft’s Start Menu but paid.
So Microsoft is one of the most valuable companies in the entire world. They have a stranglehold on corporate America, power a huge the cloud infrastructure, hold one of the largest sources of telemetry/user data, and are the defacto standard of PC environments worldwide.
Why in the fuck do they need to pivot to ads? I’m genuinely curious. Even if they lost 50% of their entire business they would still be one of the most profitable companies in the world.
Because when you have shareholders, there’s no such thing as “we’re profitable enough”. Shareholders always demand more. Ads means more profit, at least in the short term. Next quarter profits are all that matter to public companies.
It’s obscene, but it’s the way it is.
It’s not just that they demand more, they demand more/faster growth all the time. It doesn’t matter that the economy has slowed down to borderline recession, it doesn’t matter that they pretty much captured all the market they can, they still need to make more and more money every quarter otherwise they’re considered a failure even if they are one of the biggest companies in the world.
Because they were “leaving money on the table” instead of getting it for their shareholders.
the shareholders don’t get that. the top managers, CEOs etc. get it. some of them may be shareholders as well, but that’s not how they fill their pockets.
@SuperSynthia @dvdnet62 because once untamed capitalism sees a money spigot they can’t help but wonder how wide it will open.
I think it’s the same reason games offer a cash shop for things you can get in-game. Sure they’re making billions but why not billions plus ad revenue? I don’t agree with the practice but the answer always comes back to money.
@SuperSynthia @dvdnet62 Because for capitalism, profit is not the end, only a means to the end. The end is to accumulate sufficient capital to absorb all competitors and achieve total control of markets.
Yea but like, their competitors, when it comes to operating systems are Apple, which isn’t anywhere near small enough to be obtainable by anyone and Linux and Linux-Derivatives, which are also unobtainable due to their open source nature.
@accideath The point isn’t whether Microsoft will reach that end. The point is that like all capitalist enterprises it will forever strive to do so.
Not all of them. Only the big and successful ones
@accideath All of them. That is the definition of a capitalist enterprise.
Not every larger company is automatically evil, just because they exist within a capitalist market. A lot of them are, sure. At least to some extent. But there still are privately owned enterprises that do have a conscience.
Also, calling them “capitalist” enterprises seems redundant.
@accideath I’m calling them capitalist enterprises to emphasize that they are capitalist enterprises. They accumulate capital. That is what they are and defines what they do.
A capitalist enterprise does not decide it has enough and can retire and take up gardening. It is not a person. It does not have a conscience.
A privately owned enterprise can. Publicly traded ones can’t. A privately owned enterprise also doesn’t need to make more money, if the owner doesn’t want that. A publicly traded company that has to answer to its shareholders has to make more money and to keep growing to appease said shareholders. If you don’t have shareholders you don’t have to do anything like that. That doesn’t mean, of course, that any privately owned company is automatically good – many aren’t – but it does mean that they have the capability to not be evil.
Would be nice if pivoting to ads caused them to lose 50% of their business.
Sadly it won’t.
Better question is “why not”?
I’d believe Google has a larger data collection as it’s includes both google hardware and software products.
Google can also connnect the dots between an extreme amount of user data and services.
@SuperSynthia @dvdnet62 Because capitalism demands infinite growth.
@SuperSynthia @dvdnet62 I’ll explain in two very simple words.
MOAR MONIES
Isn’t it obvious? Start Menu is being used by every windows user but is not generating any revenue Serving ads will enable them to better support the platform and provide more advanced features. Ad supported version is better than making it a subscription like some third party apps have done. Start8 I think, basic copy of Microsoft’s Start Menu but paid.