27 Mar 2013
A couple of weeks ago, you might have heard from your geekier friends that Google has decided to “power down” their Google Reader service, which, even after they hobbled it, was still a great service. This prompted me to write a lengthy post on the topic . . . just in time to find someone who said it better. I do still have some things that I wanted to add, however, so no concise blog post for you today.
When looking at web services offered by for-profit companies, here is a simple rule: If you aren’t paying for the product, you are the product. Companies like Facebook do not make money off their users, they make money off of advertisers, which means that those advertisers are the actual customers, not you. What Facebook is selling to those advertisers is your attention and your data (whether that be direct information like name and hobbies or indirect information like anonymized browsing and social networking trends).
Of course there is a moral component to all of this, nobody wants to be a product, after all, and it is easy to get worked up over having your information traded between third parties, but I’m going to ignore that. What this relationship means is that for companies like Google or Facebook, their loyalty is to their advertisers, not to you. And when it comes down to it, if you are not that good of a product (Google Reader was apparently difficult to monetize), if that product doesn’t sell, they will find a new one. And so Google Reader gets dropped in favor of Google+, whose users are apparently much shinier products. (Of course, there is doubtless more to the decision than this, Google appears to be attempting to build a large, integrated platform with G+ and Reader simply didn’t fit in, I do not begrudge them their business decisions).
On the other hand, when you are paying directly for a service, you are the customer (or at least a customer, there is nothing to keep that service from selling your information). The company has a vested interest in keeping you around, as you provide revenue. That doesn’t make all paid services better than their free equivalents, but a lot of them are.
Of course, this starts to get complicated when you are talking about minors or college students, who are often defined by their inability or unwillingness to pay for things that they could otherwise get for free, so regardless of icky ethical practices or instability, free services will continue to dominate the market, but I imagine that in the coming years we will see an increase sophisticated premium services, and equally sophisticated methods of paying for them.
Finally, much of this post was inspired by NewsBlur, a social RSS reader based on a subscription model (although they do offer a free, limited, account). When I got it working (it took a while due to them being slammed from the Reader announcement), it felt like home: a visually pleasing RSS reader with a solid social network built in. In some ways, I kind of wish that I had jumped the Reader ship earlier, but I was unaware of the alternatives. And although it may sound like they are paying me to say this, I am in fact paying them, and I wouldn’t have it any other way.
Stuff that I came across after I had finished writing this post (but that I don’t feel like editing into the post):