Social Media Has Entered Its Death Spiral

🌈 Abstract

The article discusses the chaotic changes and uncertain future of social media platforms, particularly in the context of Elon Musk's acquisition of Twitter and the broader challenges facing the industry.

🙋 Q&A

[01] Elon Musk's Acquisition of Twitter

1. What are the key changes Elon Musk has made since acquiring Twitter?

• Musk has cut over 50% of Twitter's staff, with decisions seemingly made arbitrarily rather than based on employees' credentials
• New features have been rushed out in a week, highlighting the problems with such rapid development
• Chaos has ensued, with issues ranging from parody accounts to misinformation and disappearing/reappearing official badges
• Musk has warned that Twitter could face bankruptcy if it doesn't generate more revenue from subscriptions, as the platform is losing $4 million per day

2. How does Musk's approach to running Twitter align with his "brand of entrepreneurship"?

• Musk's actions at Twitter, such as the rapid changes and layoffs, are described as the "erratic disruption associated with Musk's brand of entrepreneurship"
• The article suggests Musk has not failed to deliver on this disruptive approach since taking over Twitter

[02] The Broader Challenges Facing Social Media Platforms

1. What are the key challenges facing major social media platforms like Meta, Instagram, TikTok, and Snap?

• Meta (Facebook) has seen a significant decline, with its share price dropping below $100 for the first time since 2016, as investors want the company to focus on its core apps rather than the Metaverse
• Instagram has struggled to clone TikTok, upsetting its power users, and has been shown to be dangerous for teenage users, which Meta knew about but did not address
• TikTok, while popular, is owned by the Chinese government, raising concerns, and the app loses a significant amount of money
• Snap has consistently disappointed investors, only making a profitable quarter once since going public in 2017, despite growing user numbers

2. What are the potential consequences of these challenges for social media platforms?

• The article suggests social media platforms are entering a "death spiral," with many pioneers like Myspace and Tumblr already meeting their end
• The human consequences have already started, with major layoffs at Meta, Twitter, and Snap
• The recession and decline in advertising spending will further fuel the challenges facing these platforms, creating a "vicious cycle"

3. What potential futures are envisioned for social media platforms?

• Meta is betting on the Metaverse as the future, while apps like BeReal aim to provide a throwback to the pre-social pressure Instagram days
• The article questions whether the next platform can "figure out how to make social media social, and not a content mill that turns the consumer into the product"
• However, the article suggests it is difficult to envision a world without social media, as they are so entrenched in people's lives, and platforms may be able to "hang on long after they've outstayed their welcome"