I was watching the recent testimony of social media CEOs before the Senate of the US Parliament with keen interest.

I have always taken a keen interest in this space because this social media thing is very powerful. And it has the power to make or break the world, create or destroy the fabric of our society.

I watched a Netflix Documentary titled “The Social Dilemma” before I quit social media completely. It’s been more than 3 years now. And now I can’t imagine my creative life with social media.

And now I can’t wait for the day when I will be able to quit WhatsApp. My attention span will vastly improve and my focus will become a superpower then.

But quitting WhatsApp will need quitting my job too! And I have already started making plans towards that goal.

Anyway, back to our topic of discussion: Social Media Menace.

There are a lot of disturbing stats on how social media is affecting teenager’s mental health. From child pornography to illicit drugs to bullying to whatnot, social media has become a safe haven for all evils.

But what is new and surprising in this you may ask?

Earlier, these activities were carried out offline and now in this digital world, these are happening online on social media.

Very right. I agree.

But what stings me is how just a bunch of few people (Tech CEOs this time) hold the most power to impact millions of children’s lives.

Actually, there is no conundrum here.

The more time people spend on these platforms (X, Facebook, Instagram, TikTok, Snapchat, etc.) the more money they make.

But the catch is that disturbing content like child pornography can also make people, teens and adults alike, stay on this platform longer. While fully knowing how harmful this is for everybody the tech CEOs aren’t doing anything. Because it will affect cash flows.

It is just like gun violence in the US. Every politician, every parent, every voter knows that the open sale of guns should be banned. But cash flows, you know!

The recent case in debate is of children getting illicit drugs from Snapchat and dying as a result.

Some children commit suicide as well.

It got me thinking if the use of social media is leading children to die then how will these companies profit in the long run? At least this reasoning should make them build safer platforms for all, children especially.

But no, it is a skewed thinking.

Their strategies to exploit the vulnerability of a human’s psyche are leading them to profit to the tune of billions of dollars but lose few dollars along the way. Doesn’t hurt. Makes sense.

Simple premise:

Zuck can make Facebook and Instagram safer for teens but will lose revenue to the tune of $18 bn every year, let’s say. Will he do it? No!

The way forward

What if their business model didn’t run on ads but on subscriptions?

Suppose Facebook starts charging $10 per year per account for an ad-free, safe-user experience it will still make more money than the ad-revenue.

Because we want to use it for free we pay a hefty price for it.

To estimate whether Facebook would make more revenue by charging a subscription fee of $10 per year from each user compared to its current ad-based revenue model, we can conduct a basic calculation.

Let’s make some assumptions:

1. According to Facebook’s latest reported user count, it has over 2.8 billion monthly active users (as of Q3 2021).
2. Let’s assume that all users are willing to pay the subscription fee.

Calculation:

Total potential subscription revenue = Number of users * Subscription fee per user per year

*Total potential subscription revenue = 2.8 billion users ** $10 per user per year

Total potential subscription revenue = $28 billion per year

Now, let’s compare this potential subscription revenue to Facebook’s revenue from advertising.

According to Facebook’s Q3 2021 earnings report, it generated approximately $29 billion in advertising revenue for that quarter alone. Extrapolating this over a year (assuming similar performance throughout the year, which might not be entirely accurate due to seasonality and other factors), we get:

Annual advertising revenue = $29 billion * 4 quarters = $116 billion per year

Compare $28 billion to $116 billion per year as revenue of your company.

And now one more deal-breaker. Ask yourself how many people will actually pay to use Facebook.

Because we want to use it for free we pay a hefty price for it.

But what about Google?

It also provides so many apps and services for free and sells my data to advertisers in return, so what? We are okay with it because we can not see its direct impact on us.

So, is every software or website that provides us its services for free exploiting us in some way?

No way!

Take the example of Couchsurfing:

Couchsurfing is a hospitality and social networking service that connects travelers with locals in the city they are visiting. The platform allows travelers to stay as guests at a host’s home at no cost, fostering cultural exchange and providing a unique and authentic travel experience.

The platform generates revenue through optional identity verification fees for users, as well as through a paid membership program that provides additional features and benefits for members.

Additionally, Couchsurfing may also earn revenue through partnerships, sponsorships, and advertising on its website and app. However, the core functionality of connecting travelers with hosts and facilitating cultural exchange remains free for users.

But Couchsurfing is neither a public company nor as profitable as Facebook.

Something to ponder

So, does it all boil down to money or power?

What do you think?

And moreover, what can a helpless parent like you or me do in these troubled waters?

I somehow managed to pull myself out of social media mess but how will you convince your child. If you advise against it they will take you as their enemy.

It’s a double-edged sword. There are no easy answers here. I am on the lookout. You also do your part. And we will discuss the solutions in the comments.