Technology
This is the official technology community of Lemmy.ml for all news related to creation and use of technology, and to facilitate civil, meaningful discussion around it.
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If the company is already not profitable, losing some of the most active users can have a big effect. Every tick further away from profitability is huge, and a decline in content quality can absolutely produce such a downward tick.
Especially if that premium content doesn't so much go away as move somewhere else.
Most people who have left don't use the first party app, or don't use the newer web UI, but some did. And more will follow as post quality suffers. And for each person tha leaves the default experiences, revenue will decline ever so slightly. In order to make up for that, the company needs to be more aggressive with its monetization, which makes the UX worse, which causes more people to leave. Then the cycle goes on.
This will be a slow process, but it's the inevitable process of enshitification. Especially when you don't already have a profitable business model. And Big Social is learning the hard way right now that community is profitable.