Why not just ask people for $1 per year to use FB, and then have non-targeted ads to cover the rest of the loss in revenue?
Source?
Study quotes 2.68x earnings in 2009 but in my experience it’s even higher these days.
That doesn't mean they would or can spend $1000 on FB, but with the proliferation of subscriptions on app stores that are $10+ a month, I bet FB could get $10 a month from a large chunk of users and start to move towards other revenue models.
Funny thing that, why do we never hear about a company that wants to stay the same size or shrink? What is facebook decided they wanted to be half the size they are now expense-wise, get out of the ads business, and encourage people to use their platform for less things?
I guess it's a rhetorical question, but if you went public it would scare away all the investors, right? Who would invest in a company that does not plan to grow, and might even shrink?
Private companies sometimes do that, tho.
If their friends seem hesitant about it maybe they won't sign up to pay for it.
Facebook at $X/mo is AOL. AOL was a successful but fairly predictable business. But Facebook offers a promise of growth that promises more return.