Welcome to another weekend bonus episode of the Tech Mem Ride Home. I'm Brian McCullough.

So I hope you read the piece I mentioned in the long reads on Friday called Outgrowing Advertising by

Andreeson Horwitz's general partner Connie Chan. Link in the show notes

of course, well today we're gonna talk to Connie about that piece.

Again, I think this points a way forward for the one-trick ponyism

that I've been moaned on this podcast many times.

A model for new startups now that the low-hanging fruit of

let's just get to a billion users and throw some ads up is kind of sort of

done. My thanks to Connie Chan for taking the time to have this great conversation.

So forgive me for a sort of long preamble up front here, but it's always kind of jarring to be reminded how much even the biggest internet-based consumer tech companies are essentially one-trick ponies.

In your piece, you have the stats.

Facebook, Twitter, Snap, that between 84 and 99% of their revenue is ad-based, right?

You know, you can even add Google into that mix.

But we're generally talking about entertainment apps today. Then the other

popular model is subscriptions, but that's still a one-trick pony, like Netflix

100% of its revenue is

subscription Spotify plays both sides of the fence a bit. I bet Hulu is even a little

more balanced between the two. But the chart in this piece that Gob-Smacked and maybe want to talk to you is the one that shows that 10 cents

Revenue Distribution its biggest ten cents biggest source of revenue is gaming at 36% then

subscriptions at 23% then payments I know I'm going on and on

but other I'm getting to avoid. The smallest piece of the pie is

advertising but that's a balanced pie.

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