"The Future of Information and News: LLMs, Aggregation, and Subscription Models"

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Sep 07, 2023
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"The Future of Information and News: LLMs, Aggregation, and Subscription Models"
Introduction:
In today's digital age, the abundance of information and the changing landscape of news consumption have brought forth new challenges and opportunities. The rise of Large Language Models (LLMs) and the concept of post-scarcity information have raised questions about the effectiveness of traditional moats and the need for aggregation. Additionally, the shift towards subscription-based models in the news industry has shown promise in sustaining quality journalism. In this article, we will explore the common threads between these topics and delve into actionable advice for navigating this evolving landscape.
The Power of Aggregation:
As Herbert A. Simon aptly observed, the wealth of information available today creates a poverty of attention. In order to efficiently allocate attention among the overwhelming number of information sources, aggregation becomes crucial. LLMs, with their ability to amplify the abundance of information, further emphasize the strategic importance of aggregation. However, it is worth noting that LLMs cannot be a moat in themselves, as vendors are actively trying to commoditize these models.
The Role of Security and Ownership:
With the increasing need for aggregation, the issue of security and data ownership becomes paramount. The traditional web security model, centered around the server controlling the keys, may no longer be sufficient. Cryptographic signatures and self-sovereign keys present an alternative approach that aligns with the principles of web3 and decentralized ownership. By enabling users to own their keys and data, this model reduces the chokepoints that can be exploited by aggregators.
Commoditization of LLMs:
While LLMs may currently seem like a durable moat due to the capital cost involved in gathering data and training the models, there is mounting pressure to commoditize them. Open source models, which enable permissionless innovation, can potentially gain a competitive advantage in this landscape. The availability of one good-enough open source model has already sparked a proliferation of product concepts and demos, highlighting the power of variety in the cybernetic sense.
The Rise of Subscription Models:
As the traditional news industry grapples with the unsustainability of relying on advertising, subscription-based models have emerged as a viable alternative. By directly monetizing content through reader payments, publishers can prioritize quality and relevance over mass appeal. The success of niche publications and the ability to make more from customers who truly care about the content have proven the effectiveness of this approach. The aggregate market value of subscription-based content is projected to surpass that of the current news industry.
Actionable Advice:
- 1. Embrace Aggregation: In a world of information overload, leverage the power of aggregation to help users discover and manage content efficiently. Develop innovative ways to curate and personalize information, catering to individual preferences and needs.
- 2. Prioritize Security and Ownership: Adopt a security model that aligns with the principles of web3 and decentralized ownership. Empower users to own their data and ensure cryptographic signatures to validate authenticity and legitimacy.
- 3. Explore Subscription Models: Consider transitioning to subscription-based models to sustain quality journalism and content creation. Focus on building a loyal community of readers who are willing to pay for content that aligns with their interests and values.
Conclusion:
The future of information and news lies in the intersection of LLMs, aggregation, and subscription models. While LLMs amplify the abundance of information, aggregation becomes crucial in efficiently allocating attention. Security and ownership should be prioritized, with a shift towards decentralized models that empower users. Additionally, subscription-based models offer a sustainable path for quality journalism. By incorporating these actionable advice, we can navigate this evolving landscape and create a better future for information and news.
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