• Slashme@lemmy.world
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    1 month ago

    It’s a weird business where everyone is offering an environmentally unsupportable service at below cost, hoping to outlive the competition.

    Market share of a negative profit market.

    • d00ery@lemmy.world
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      1 month ago

      It worked for netflix and the steaming services. Now terrestrial (cable) is dead and adsupported streaming tiers have returned lol.

      • FrankFrankson@lemmy.world
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        1 month ago

        It’s how every tech company that “disrupts” a market or indistry works. Uber started of burning shit tons of cash operating at a loss till it replaced enough Taxi services then jacked up the prices.

        The problem with AI is that they cannot increase the prices enough to be profitable. The AI companies are waiting for future hardware tech that will be energy efficient enough to make AI profitable before they run out of capital to burn.

        • jballs@sh.itjust.works
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          1 month ago

          The problem with AI is that they cannot increase the prices enough to be profitable.

          I saw something about the SpaceX IPO that said for it to be justified at that price, everyone on earth with some sort of money (they defined it as earning at least $14,000/year) had to become an xAI consumer and spend $28,000/year. Seems reasonable /s

      • Tommelot@lemmy.world
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        1 month ago

        I was thinking about that, but it did make governments move to digital programming (eg BBC, NPO), which they likely wouldn’t have done if it wasn’t for Netflix. I think it also improved the internet speeds here in NL significantly.

    • pinball_wizard@lemmy.zip
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      1 month ago

      Market share of a negative profit market.

      Yes. That was my reaction, too.

      If I start giving away autographed headhsots, have I then also cornered an emerging market? lol.

    • RememberTheApollo_@lemmy.world
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      1 month ago

      Wait until the winner shows up and proceeds to absolutely wreck everything with fees and subscriptions jammed into everything remaining that didn’t need AI.