09 Oct The Future of Social Media: “Flickrization” (Pay-to-Play) and the Fediverse
The landscape of social media has evolved significantly over the past few decades. What started as a realm of digital connection, self-expression, and creative sharing has transformed into a complex and highly competitive arena where businesses, influencers, and users alike vie for attention while shareholders demand return on products that, over time, have become worse. Many have called this the “enshittification” of products, but this new era of Late Stage Enshittification™ is different.
In case you missed it, Meta announced an ad-free version of their products for $14 per month.
Amount of time spent per day on social media:
Instagram: 9 minutes
YouTube: 41.9 minutes
TikTok: 33 minutes
WhatsApp: 28 minutes
Facebook: 35 minutes
For reference, Netflix ($19.99/month ad free) users spend 60 minutes daily on their app. But I digress.
A term that aptly captures this transformation is “Flickrization,” a concept derived from the history and acquisition of Flickr by Yahoo, which was once a free photo hosting platform. In this blog post, we will explore the concept of “Flickrization” and discuss how it points toward the future of social media as a pay-to-play proposition.
The Rise and Fall of Flickr
Flickr, launched in 2004, was an innovative and popular platform that allowed users to share and store their photos online. It quickly gained a devoted user base thanks to its user-friendly interface and generous free storage options. However, as its user base grew, so did the operational costs of maintaining vast amounts of user-generated content and providing a seamless experience. Eventually, these costs began to outweigh the benefits for Yahoo, which acquired Flickr in 2005.
Yahoo’s acquisition marked the beginning of a transformation that would later serve as a precursor to the “Flickrization” of social media. In a bid to recoup expenses, Flickr introduced various premium subscription plans, reducing the storage space available to free users. This shift from a free platform to a pay-to-play model disappointed many long-time users.
The “Flickrization” Phenomenon
The term “Flickrization” refers to the process by which a once-free and open social media platform transitions into a monetized and pay-to-play service. This phenomenon has become increasingly common across the social media landscape. Several key factors contribute to the “Flickrization” of platforms:
- Monetization Pressure: Social media companies, like any other business, face financial pressures to sustain and grow their operations. Advertising revenue, while substantial, may not always be sufficient, leading them to seek additional income streams.
- User Expectations: As users become accustomed to accessing platforms for free, they resist the idea of paying for services that were once complimentary. This resistance can lead to backlash and a decline in user satisfaction.
- Content Moderation and AI: With the rise of user-generated content, platforms must invest in robust content moderation to ensure compliance with community guidelines and legal regulations. While many of these social media platforms failed miserably at this, they’ve recently decided to flat out end moderation or replaced badgered, abused and underpaid humans with extraordinarily terrible AI.
- Competition and Innovation: To stay ahead in the highly competitive social media landscape, platforms must continually innovate and invest in new features and technologies. These investments often necessitate additional revenue streams.
The Future of Social Media for Brands: Embrace — or Leave — “Flickrization”
As the “Flickrization” trend gains momentum, it’s essential for both social media companies and users to adapt to this evolving landscape:
- Premium Features: Platforms will likely continue to introduce premium features, subscription plans, and tiered pricing structures to monetize their services while still offering free access.
- Value Exchange: Users should recognize that in a pay-to-play model, they’re not just consumers but also contributors. In exchange for their financial support, they can expect enhanced features, reduced ads, and better content quality.
- Diversification: Social media companies may explore diversifying their revenue streams beyond ads and subscriptions, such as e-commerce integrations, virtual goods, and other creative monetization strategies.
- Privacy and Data Protection: In an era of increased awareness about data privacy, platforms must prioritize user data protection and transparency to maintain trust.
This also poses new challenges for brands: Should they bother investing in platforms that ultimately, have lied, cheated and stolen from them? Between the rise of private groups and chats and the fediverse, social media is going full niche mode.
It’s Time For Brands to Enter the Fediverse
Brands should enthusiastically embrace the Fediverse, a decentralized and open-source social media network, for a multitude of compelling reasons. Companies including the CBC, BBC and yes – even Meta via Threads – are plunging into the Fediverse with their own instances.
Why?
First, the Fediverse aligns with the growing demand for privacy and data ownership among users, as it allows individuals to control their data and choose their preferred servers and communities. By participating in this network, brands can demonstrate their commitment to user privacy and data security, thereby building trust with their audience. Additionally, the Fediverse’s diverse and niche-focused communities provide a unique opportunity for brands to engage with highly targeted audiences, fostering genuine connections and more effective marketing efforts. Moreover, the absence of a single corporate entity in control of the entire network means brands can avoid the risks associated with centralization, such as algorithmic biases and censorship. In embracing the Fediverse, brands can cultivate a more authentic and community-driven online presence, ultimately strengthening their relationships with customers in the digital age.
The “Flickrization” of social media represents a shift in the industry’s economic dynamics, where monetization strategies evolve to sustain the platform’s viability. Users must recognize this evolution and adapt to the changing landscape, while social media companies should strike a balance between generating revenue and preserving the essence of open and accessible online communities. By understanding that the “Flickrization” of social media is here, brands can smartly navigate the future of social media including the Fediverse with a more informed perspective on its value, cost and return on investment.
