- What are the pros and cons of an advertising revenue model for your product, and the internet overall?
- Optional: How (and why) does this model affect individual well-being? What are ways to reduce the negative impacts of this revenue model?
MusicStreamCo could really benefit from the ad revenue model if implemented properly. Platforms like Spotify in the past have taken advantage of this revenue model to monetize free users through ads and charge a premium subscription fee for users that want to waive this limitation in the platform. However, as the article “the internet’s original sin” and the podcast “We know what you did” state, there should be new intelligent methods to monetize without introducing UNRELATED ads to a user.
Hence, in MusicStreamCo I would introduce an ad revenue model for free users, but with the limitation of only allowing ads of artists that want to showcase their music to a wider audience. This would align both the incentives of the artist that wants to expand their fan base, but also the interests of the users that would to discover new songs, and entertain themselves. With AI we could target specific ads to specific users and through this revenue model increase retention even for the free users.
