The internet’s second revolution | The Economist

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L. O. Two simple letters that marked one of the biggest changes… …in human history In 1969 programmers were trying to type “login” Charlie typed the L. He typed the O He typed the G. You get to G—whacko The system crashed So the very first message on the internet ever… …was lo, as in lo and behold 50 years later and half the world is now online But that half is primarily from the rich world Which means that the other half quite obviously… …will have to come from the poor world How will the second half of humanity coming online change the internet… …and how will the internet change them? The really interesting place to look at is India India’s internet penetration was pretty low… …until very recently with the launch of a new mobile network… …called Reliance Jio… …with incredibly cheap phones and incredibly cheap data prices Reliance Jio launched aggressively in 2016… …offering subsidised handsets and free data to hook people in India went from being a relatively expensive place to consume data… …to being the cheapest in the world. Prices crashed by 94% Newer users in the developing world are browsing the internet… …in much the same way as people in the developed world When people get online the first thing they do… …is they chat with their friends… …they watch sports, they watch movies, they watch music videos They watch an extremely large amount of pornography But this is where the similarities end The internet was built on the assumptions… …that many users speak English… …are literate and are media-savvy None of those things remain true… …for the second half of the internet You have a whole bunch of languages… …that don’t enjoy very good support… …in terms of web browsers or input And you have a whole bunch of people who can’t actually read or write There’s practically no usage… …of desktop computers, laptop computers It’s almost entirely on mobile phones… …and these mobile phones tend not to be… …the expensive, very powerful ones They have limited amounts of storage This is prompting big tech companies… …to change the way their products work They’re having to understand these new behaviours They’re having to fundamentally rethink… …how they supply their services For much of the world that is now coming online… …text is not the natural way to interact It’s smaller apps that can do more… …and that can be used with voice or video rather than text Many tech giants have already begun… …to establish themselves in emerging markets Facebook has over 1.5bn users in developing countries… …and the YouTube channel with the most subscribers… …is a Bollywood studio and record label Creating large user bases is one thing… …making money from them is another The prevailing assumption around making money on the internet… …until this point has been a largely… …American assumption of advertising 99% of Facebook’s revenue comes from advertising… …as does 85% of Google’s But many people in the developing world are poor So users don’t have the same value to advertisers Take Facebook’s last quarter of 2018 They make 12 times as much money per user… …in North America than they do in Asia And overall annual revenue from the developing world is much lower too Google for instance, about 46%… …of their revenues comes from the US alone… …and only about 15% from Asia That 15% includes rich countries like Australia and Japan Take those away and the revenue from Asia would be even lower If the traditional advertising model isn’t going to work… …tech companies will have to think outside the box What people will pay for is the opportunity to express themselves Until the advent of smartphones really, a big money-spinner… …for Indian mobile networks was something called… …a caller-ringback tone I would pick a song that I like very much… …and if you were calling me you would hear it… …and I pay a monthly fee for that to happen Now think about exactly what this is I am paying money… …for a song I will never listen to, only so that… …my friends who are calling me can hear it… …because I want to express myself So it’ll be lots of novel ideas like that… …for very, very small amounts of money but we’re talking about… …lots and lots of people doing these things One thing is for sure… …the internet’s second revolution will change people’s lives for the better The ability of people around the world to… …have a good time is becoming a little bit more equal And that, while hard to pin down in economic data… …is a net benefit to just the general well-being of humankind… …which can be very easy to understate or to ignore… …especially if you’re used to those things but has a really meaningful impact

99 COMMENTS

  1. Teacher… What happens if we do not STOP the Racka??? The Book of Knowledge says The Sun, and The Moon will go dark, and The Stars will fall from the sky… ALL WILL BE LOST!!! We will live on as immaterial immortals in endless void… You see….., we can not CEASE TO EXIST for WE ARE Existence!!! This WAR between our Two Nations, one on this side of FLAT HOME EARTH; the other Nation from the OTHER SIDE of our FLAT HOME WORLD in our Concentric Circles Sacred Geometry Celestial Sphere has gone on for way too long…., and inside ETERNITY, we can do so much more better then fight, and harm, and hurt… I am certain my message gets to both sides of OUR HOME… Therefore, it is imperative that WE STOP THIS!!! For they have shown the Truth even while they made FAKE SPACE TV Shows and Hollywood Movies for you to consume – Consume – CONSUME.., and they {{{for incomprehensible reason}}} want to Shatter THE DOME when we know there is nothing out there…, but THE SHADOW OF DEATH, but we won’t die, just everything in here will IMPLODE!!! So fearful are they of going to Jail, or Prison, or Being Tortured, and for many of you, I am sure you want to give them that, but [We Are] +=+ Say: LET THEM LIVE……, and wear A MARK on their Right Hand or Forehead, /* let them choose.., until the day their bodies decompose, and we will just put ELECTRONIC MONITORS on them, and any one from either side of our Celestial Sphere may know where they are, but we will NOT do Racka [for their memories] +=+ will die with them, but NOT THEIR BOOKS of intrusion into what once was Nirvana – Shamballa – Paradise!!! If I can see it, you can see it, and if you can see…., THEY LIVE can see it in our eyes… We Are the FOUNDATION STONES whom took off the shackles and became The Freed Masons, and we will TAKE That Slave Collar off of our Mother Heaven…, and our Father Earth by DECONSTRUCTION and Dismantling of this {dissembling thing} known as THE EDISON in Santa Barbara CALIFORNIA USA…., so all people may participate in OUR WORLD REPUBLIC CONSTITUTION where we all will be born into New Bodies, New People, and New Ways where in The Future the TRUE Intention of THE WORD will matter…., and Dignity, Decency, and Charity shall prevail.., and THE RULE OF LAW [shall be no more] for we will ALL live by FAITH in one Another… The Oracle for the End of an Age connected to THE SOURCE of all creation has spoken… We Are Pak-Toe… We Do NOT do Racka… WE Take them out… The Book of EXODICE…

  2. Oh god, you haven’t include how bad can it be. Should take Indonesia as an example, since most of the low-income are poorly educated, they are not mature enough in digesting information.

    This is where fake news or hoaxes come in. People would entirely digest that information, share it to everyone and from then on, massive amount of hoax have been spreading.

    This is especially prevalent during the last election, whereby massive amount of fake news flooded everyone’s news feed, and this caused massive impact on the behaviours of society, such as worsening division between two opposing political supporters.

  3. "Having a good time" vs Having it's own life "change for the better" are two completely different things… I don't share your optimism for the future.

  4. Summary:
    -Half the world is online and they are the rich
    – how will half the humanity change and internet and how internet will change them
    Case study: Reliance Jio 2016 in India made more people to use the internet through subsidies
    – not all functions are supported due to diff demands of people(language and storage) . Big companies are already growing in the emerging market. 1.5 bill fb users in developing countries and the YouTube account that have the most subscriber is a Bollywood label
    – 99% of fb revenue comes from advertising, google 86%. Revenues for these companies mostly come from rich countries.
    – people will pay to express themselves (eg. Caller ring-back tone)

  5. I don't agree with the simple optimism this video hold about the internet age.

    Although it has many useful applications, the internet, in particular mobile device, also means a dystopian future of global surveillance, global censorship, global misinformation campaign, enormous concentration of power… becomes possible if not carefully managed.

    For example, in the ethnic minority Uyghur region where the Chinese Communist Party (CCP) regime is building the largest ethnicity-based concentration camps since the Holocaust, the remaining few ethnic Uyghur people not yet in the concentration camps are forbidden from NOT carrying a mobile phone with them or turning off the "location" function.

    Another example is the Twitter's recent announcement of discovery of more than 200,000 accounts controlled by the Chinese Communist Party (CCP) uploading hateful contents in an effort to attack the Hong Kong people's freedom democracy movement. For example, these accounts pretend to belong to the protesters and upload pictures depicting police as cockroaches and terrorists, while some other accounts pretending to belong to the police and depict the protesters as cockroaches and terrorists. Twitter's announcement is available at Twitter Safety' s page.

  6. Ahh…..These Indians. Braindead, brainwashed Indians. They all live in WhatsApp you know, spreading lies that kill innocent human beings.

  7. Looking at the video and seeing those power lines going everywhere it got me thinking about building a microgrid with solar panels and batteries, so you could get rid of some those wires

  8. Oh no, please don't let the unwashed masses from the third world get online. I am disgusted enough by the Indians delivering my food and washing my car here in Dubai.

  9. There is far more harm caused by duffers living in the 'rich' world through the internet, than people whose lives have been radically changed by the internet who use it far more responsibly.

  10. They’re still using shitty phones and just got the internet while here in America we fight over apple or android being better. We also consider people with a 650 dollar iPhone 6 to be poor just because it’s older.

  11. 2:44 : This sleazy item number is the best representation you could find of Bollywood music studio channel, T-Series … right ?
    Bravo blatanty-biased British 'The Economist' ….. Bravo 👏👏👏
    BBC showed its true colors abundantly… looks like you're no different 👎

  12. caller ring back tone is a new phenomenon in India? in here, (Malaysia), this called 'caller ringtones' has been introduced since 13-15y ago..

  13. It's a brave new world. And what is becoming clear, is that there's money to be made by making people feel happy and valued, rather than making them burn with envy. The difference from the past is when the focus then was on hoarding wealth, the new understanding is that wealth increases when happiness is shared and increased. It has changed the way people look at opportunity. Greater opportunities for information propagation and learning, all feeding off of an unquenchable thirst for knowledge and curiosity.

  14. Caller tune is nowhere related to internet btw… Useless example to explain internet revolution in developing countries… Specially like India.

  15. I realize that there was no bad intentions whatsoever here but I'm sure those business dudes getting snacks on the road at 3:16 will have something to say about this LOL

  16. I mean there British Propaganda and imperialism are rubbish and garbage. For them everything(except themselves) is cheap and low class

  17. Interesting info but you would think that the Economist could afford to give this guy a microphone. I'm sure you paid a tech to produce this video and they should be able to equalize the volume especially when you have a guy with a low range voice, speaking quickly with an accent. I want the information without having to strain to get every word.

  18. how to make large amount of views. – Talk about just 1 country- INDIA . "lol THE ECONOMIST" trying to get 90% views from India most of the time

  19. The Economist… their only intention is to create content to show the developing world in a negative way. Fuk the Economist! Fuk them all.

  20. The language barrier is no problem, because large languages are very popular online like hindi or arabic

    Also the other differences will vanish as the population enriches

  21. India is going through a structural economic slowdown and recession in near future. One reason that noone talks is the influence of so called cheap data hookers like jio causing massive slump in productivity.

  22. Liked the video until they stated that "it will be a good thing and make people's lives better"; that's a bold claim. We know that more information can result in anxiety disorders and depression.

    I would suspect that mental health issues will become much more prevalent in the undereducated when they are presented with a flood of information, status symbols and good looking people.

    Such issues might result in the rise of more authoritarian figures or tech companies imposing their will on unsuspecting populations. Rich industrialized countries are seeing increasing sucide rates, drug addiction and demagoguery; the video completely misses the downside and that's poor journalism.

  23. funny how you include China when it comes to the low revenue of facebook and youtube.
    but always exclude China when talking about the "benefit" of facebook and youtube

  24. The unqualified and uniformed appear to be on the verge of taking over public discourse in this country.

    In most places, passion and conviction have supplanted expertise and thoughtfulness.

    By giving everyone the opportunity to huddle together with a seemingly innumerable number of like-minded confidantes, the internet has given each one of us an undeserved confidence to publicly express ourselves in an easily accessible forum perfectly suited for the immediate expression of nearly every pulse of electrical energy which happens to pass across our brains no matter how poorly disguised as a coherent thought.

    Shallow, if not patently irrational, opinions based on bad reasoning and sometimes no reasoning at all appear to be more prevalent than ever.

    Confidence can be a very good thing when born from success but can also be dangerous when born from a confirmation bias which emboldens everyone including, and perhaps especially, the confused, the ill-informed, and the deceitful.

    In years past, people knew when they were unqualified to speak their minds in public. Lack of confidence was a good thing, it told them something, it created humility, and it prevented a lot of nonsensical ideas from escaping the darkness of a confused mind.

    I think we all need to be more intellectually inhibited. We need to be more suspicious of some, maybe most, of our own opinions, and nearly all of the opinions expressed by everyone else, especially anyone described as a news commentator. The world is a much more complicated place than we have allowed ourselves to be lead to believe.

    And none of us are as smart as we think we are, despite the many ways that the internet goes about falsely certifying all of us as experts authorized to confidently espouse ideas and fearlessly debate issues with various stangers we have never met in connection with numerous topics most of us know absolutely nothing about.

  25. Im fuckin telling you, ye sons of a bitch if you are fuckin up with my money IM GONNA USE ALL MY FUCKIN POWER AND IM.GONNA FUCKIN KILL YOU EVEN IF IT MEANS STARTING WW3 IM GONNA FIND OUT WHO IS IT WHO THE ARROGANT COWARDS SONS OF A BITCH ARE

  26. I swear, western media is obsessed with old stock photos and videos of India, they don't even update their knowledge about our country.

  27. That caller ringtone thing was a predatory scheme that the telecoms use on the users by sending flash notifications that users didn't understand and if the user clicked okay it would subscribe them to that crap. I had to explain this to so many relatives and colleagues. They didn't know they were being scammed.

  28. I feel like there should be some sort of course to complete before being allowed on the internet.
    There's so much misinformation on the net and people need to learn to navigate that. Yes, to some it comes automatically but to most, not really

  29. Fakes news in developing countries is going to cripple them. Right now in South Africa for instance videos of violence from years ago is being circulated as current events. The result is rising tensions, rioting and violence. With deepfakes its only going to get worse.

  30. The real question is how the economist… A once respected, well researched and objective publication, turned into a lefty, piss weak globalist pig , similar to a roll of toilet paper… Having said that I have no problem with this segment…. Just what the economist has recently become

  31. A good point in the example of caller tunes, that solutions unique to the market based on actual behaviour of people need to be explored. Another thing that people are willing to pay for in India is educational content, which helps them improve their income/job prospects. Also, the editor of the video seems to be in love with Saki Saki remix 🤐

  32. Wow great video – until they stated it will have an unquestionably positive impact.

    Uh, lots of questions about that

  33. Once, I told an Indian; that the growing population of first time internet users in Indians are using their smartphone as the primary means to access the internet. The guy got offended. Ultranationalist much? This shows how much the income gap is, to him, even as an local indian, he can't imagine that other indians don't know how to read english or have access to desktops and laptops. He took it negatively that they are using smartphones to get online

  34. In Myanmar, the popular perception is that facebook is the internet. That's how much the smartphone is the only access to their world. facebook is the internet, messenger is a function of the internet. Google search and other google services like gmail and such are unpopular and practically non existent to them. This is a huge problem for fake news and misinformation because they are essentially stuck in their own echo chamber and no one, not even facebook is monitoring them.

  35. This is why Asia is the main market for f2p and microtransaction business model. People can't afford fancy shit so they spend all their money on mobile games where they charge less than a dollar per transaction.

  36. Very informative. Can you make a vid on the slowdown of the Indian economy? Its causes and possible ways to improve the growth rate.

  37. I’d like more precision in your statistics please. The ideas these videos convey are great and novel, at least to me. But the statistics need to be more precise to prove your point. None of this “Australia and Japan in this graphic, it would be even lower” – Well, give me the graphic without Australia and Japan then

    Great work overall, thanks

  38. This organization only cares about monetary value that internet generates, for large corporations. JIO alone is a massive contributor to so much misinformation.

  39. Interesting podcast from TE this time not even controversial or misleading.

    I find it interesting that PRBT is so popular in some markets – never heard that used anyway in the broadly considered West.

  40. The reason the revenue in Asia is very low is that both Facebook and Google are blocked in China, leaving American tech giants only Japan, Australia and a handful of developed countries/regions to collect revenue from.

  41. Why aren't you talking about the dark side?
    mob justice and mob lynchings, political propaganda, rise of nationalism and religious political parties?

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