What will happen to Google (GOOG) and Facebook (FB) if content runs out?
That’s the question posed by Hedgeye Demography sector head Neil Howe in a recent presentation on the tech giants. Facebook and Google are continually eating up more and more of the share of online ad dollars to the point where it might actually starve news media and other content creators.
Or as Howe puts it another way: how can a parasite survive if its host dies?
“How interesting are Facebook and Google going to be if all they can link to is fake news and cat videos?” Howe asks in the video above. “All the content that Google and Facebook are basically parasites on is being squeezed down to nothing.”
With recent news that Facebook and Google would be willing to negotiate ad rates with news media, Howe wonders if they realize that the writing is on the wall.
Watch the clip above for more.