Understanding What's Behind Your Favorite Apps

QUICK BREAKDOWN

What’s in this issue

1. Understanding What's Behind Your Favorite Apps

2. Top 3 Newsletters

3. Etcetera

Hey there, curious minds! Have you ever wondered why we can use apps like Facebook and Instagram for free? Well, let's dive into the world of digital platforms together to uncover what's really going on behind the screens.
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Imagine you're at a playground, and there's a seesaw. On one side, there are people who want to see cool stuff, like funny videos or cute pictures of puppies. On the other side, there are businesses who want to show their products to these people. Now, the playground owner (let's call them the platform) lets these two groups play together, making sure everyone has fun. This playground is what we call a multi-sided market.

But here's the twist: even though you don't pay money to use these apps, you're still giving something valuable—your time and attention. Just like spending time playing with friends on the playground, using social media means you're not spending that time doing other things, like playing outside or reading a book.

So, when someone says, "If you aren’t paying, then you’re the product," they mean that while you might not be giving money, you're still giving something important—your attention. And that's valuable to the companies running these apps because they can show ads to you, and that's how they make money.

Now, let's talk about a book called Technofeudalism. The author, Yanis Varoufakis, talks about how these digital platforms are changing our world. He says they're like modern-day kingdoms, where instead of paying money, people are like serfs, giving their attention to the rulers (the companies).

But some people disagree with Varoufakis. They say these platforms are more like playgrounds than kingdoms because they bring people and businesses together for fun and profit. And just like on a playground, if the games aren't fun anymore, people will leave, and the businesses will go somewhere else to show their products.

So, what's the big idea here? It's that even though apps might seem free, there's always a cost—the time and attention we give them. And as kids, it's essential to think about whether spending so much time on screens is the best way to have fun and learn about the world around us.

So next time you open your favorite app, remember, you're not just playing a game or watching a video—you're part of a big, digital playground where everyone's time and attention are the currency.

Top 3 Newsletters

1. Simple.ai

   The Magic of AI Made Simple For Mere Mortals

2. Black Swan Street

   A Weekly Newsletter That Provides A Sobering Look Into Capital Markets & Economic Trends. Stay Informed Without The Noise.

3. The Neuron

   Don't fall behind on AI. Get the AI trends and tools you need to know. Join 400,000+ professionals from top companies like Microsoft, Apple, Salesforce and more. 👇

Etcetera

America's most scenic drives.

The history of Cinco de Mayo (and its significance in the US). 

Heartwarming foreign phrases and words without English equivalents.