The Pandemic is a paradox

The pandemic brings us abundance and scarcity simultaneously.

The Pandemic is a mixed blessing for the App economy. The Pandemic is a paradox. It brings us abundance and scarcity simultaneously. >We are time rich but cash poor. >We have Cheap fuel but are travel constrained >Asset rich but Disposable income poor More survival skills are on my podcast https://lnkd.in/eXFyEDP Stuck in lockdown we are rushing to our apps and online communities for solace on Maslow’s Hierarchy of needs. This is placing huge strain on “Free’s” business model. The pandemic has hit wallets hard. Consumers have less disposable income and are focusing on survival. It does not make sense for retailers to advertise when we have no inventory and consumers are stressed. Hence Advertising revenue is plummeting That drives Google and Facebook revenues down but usage of their systems is up handsomely. So their capacity and usage ie costs, are rising but the revenues are falling. Margins are under huge pressure and will be for a long time to come. Those apps that are subscription based will do much better in this world. Netflix, Spotify , Apple services and Gaming like Steam, Xbox or Fortnight are seeing double and triple digit growth. Brace yourself for some services moving to a subscription model soon. Even a Fremium one.

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