How to fix Facebook: Make users pay for it

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[Commentary] The indictments brought by special counsel Robert S. Mueller III against 13 individuals and three organizations accused of interfering with the US election offer perhaps the most powerful evidence yet that Facebook and its Instagram subsidiary are harming public health and democracy. The best option for the company — and for democracy — is for Facebook to change its business model from one based on advertising to a subscription service. Facebook’s advertising business model is hugely profitable, but the incentives are perverse. Using a variety of psychological techniques derived from propaganda and the design of gambling systems, Facebook grabs and holds user attention better than any advertising platform before it. Intensive surveillance enables customization for each of its 2.1 billion users. Algorithms maximize engagement by appealing to emotions such as fear and anger. Facebook groups intensify preexisting beliefs, increasing polarization.

Facebook could implement a subscription model with no customer acquisition cost because 223 million adults in the United States already use Facebook, roughly equal to cable and satellite television. With the accelerating trend toward cord cutting, Facebook is ideally positioned to win the battle for customers who get their media services over the Internet.

[Roger McNamee is a managing director at Elevation Partners and was an early investor in Google and Facebook.]


How to fix Facebook: Make users pay for it