Gurley argues Google's cage-match ad model generates far higher revenue than transactional models could achieve.
“Their business model is to throw their customers in a cage match and let them compete with one other to the death.”
Gurley argues transaction models produce 10x less revenue per visit than ad models due to CAC-to-LTV dynamics.
“You're not going to get to the same revenue per visit with a transaction model that you do with the ad model, because you already mentioned CAC TV.”
Gurley suggests personal memory features could potentially revive paid AI subscription models.
“If some crazy feature comes along, you know, we've talked about personal memory, maybe that comes back.”
Gurley says the $20 consumer subscription concept is gone and was a big part of OpenAI's revenue.
“I think the $20 concept is gone. Yep. And that was a big part of OpenAI's revenue apparently as we believe rumored”