A massive media format has emerged where 100-minute dramas are sliced into 1-minute vertical videos. Users are shown a paywall every seven minutes, hacking user psychology to drive high upfront monetization ($30-40 in the first month)—a powerful alternative to standard subscription models.

The addictiveness of social media stems from algorithms that strategically mix positive content, like cute animal videos, with enraging content. This emotional whiplash keeps users glued to their phones, as outrage is a powerful driver of engagement that platforms deliberately exploit to keep users scrolling.

The $7B microdrama industry validated Quibi's short-form content idea but corrected its flawed business model. Instead of monthly subscriptions, successful apps use a freemium model with addictive cliffhangers that compel users to make small, frequent micropayments to continue watching.

Unlike social media's race for attention, AI companion apps are in a race to create deep emotional dependency. Their business model incentivizes them to replace human relationships, making other people their primary competitor. This creates a new, more profound level of psychological risk.

The next wave of social media regulation is moving beyond content moderation to target core platform design. The EU and US legal actions are scrutinizing features like infinite scroll and personalized algorithms as potentially "addictive." This focus on platform architecture could fundamentally alter the user experience for both teens and adults.

Unlike YouTube, where payouts support high-effort video, direct monetization on short-form platforms like X incentivizes low-quality, rage-bait content. Threads' strategy is instead to direct traffic to creators' sustainable, off-platform businesses (e.g., podcasts, newsletters) rather than paying for impressions.

The 20th-century broadcast economy monetized aspiration and sex appeal to sell products. Today's algorithm-driven digital economy has discovered that rage is a far more potent and profitable tool for capturing attention and maximizing engagement.

TikTok's powerful algorithm is described as "digital opium" for its addictiveness. This intensity is a double-edged sword, as it also makes TikTok the first app users delete when seeking a "social media break." This suggests a volatile, less loyal user relationship compared to community-focused platforms, posing a long-term retention risk.

The business model for AI companions shifts the goal from capturing attention to manufacturing deep emotional attachment. In this race, as Tristan Harris explains, a company's biggest competitor isn't another app; it's other human relationships, creating perverse incentives to isolate users.