The Future of Social Media: A Shift Towards Functional Economies and Synthetic Kinship

The Future of Social Media: A Shift Towards Functional Economies and Synthetic Kinship

In today's digital age, social media has become an integral part of our lives. We use it to connect with friends and family, share our thoughts and experiences, and consume information. However, as the landscape of social media continues to evolve, new business models are gaining traction, shifting the focus from traditional advertising to subscriptions, in-app payments, and e-commerce.

Startups like BeReal, Poparazzi, Mastodon, and Post News are paving the way for this new wave of social media platforms. These companies recognize that our most valuable resource is time, and they aim to provide a better use of it. By shifting towards the media end of the social media spectrum, they offer more than just a platform for social interaction; they provide valuable content and experiences that enrich our lives.

Traditionally, social media companies have prioritized growth over monetization. However, the rise of subscriptions and in-app payments allows these companies to generate revenue early on without hindering their growth potential. In other words, even if these platforms only enjoy a brief moment of popularity, they can still generate significant revenue. TikTok has already demonstrated the potential for social networks to act as gateways to e-commerce, opening up new avenues for monetization.

Another inspiration for the future of social media lies in immersive games. Platforms like Roblox have shown the power of running in-world economies. Instead of relying on ads, Roblox monetizes through avatar accessories, game upgrades, and special experiences. The next generation of social media giants may follow suit and focus on creating functional, multifaceted economies rather than obsessing over capturing attention. This shift towards functional economies not only provides a more sustainable business model but also offers users a more immersive and engaging experience.

However, the future of social media doesn't stop at functional economies. Humans crave kinship and a sense of belonging with a larger group. While we currently satisfy this need by interacting with other humans, the rise of artificial intelligence (AI) may soon change that. It is plausible that in future decades, humans may have dozens of synthetic friends and loved ones. We will talk, play, and share with these AI creations as we do today with humans. Although it may seem dystopian, the lines between human and artificial people will become increasingly blurry.

AI can also be used to solve the cold start problem that many new social media platforms face. By generating billions of synthetic personalities to interact with human participants, even a network with a few hundred "real" users can feel active and vibrant. This integration of AI and human interaction opens up new possibilities for social experiences and connections.