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I've never been a Plex user. Always been with Jellyfin. I've heard that plexamp is a killer app but finamp has always been sufficient for my pretty basic needs. But I have a question for you (meant in good faith). You say,
If Plex needs a sustainable business model, asking for donations isn't enough. So what is the move for them? What do they do to both fulfill their need for a sustainable business and also not upset their userbase? (I'm not defending Plex or this move of taking your server hostage, in any way.)
I'm genuinely curious how, with the benefit of 20/20 hindsight, they should have played this or at a minimum, made better moves than they did.
Very glad you're with jellyfin btw. You can check out some cool plugins at awesome-jellyfin.
Donations isn’t going to cover the hunger of a 40 million dollar VC round. Those investors want more than a return, they want plex profitable ASAP
Investors are like parasitic leeches to any business model. As soon as you add them, the business has to grow in order to satisfy the leeches who provide no benefit to the model other than to be attached to it. If you ignore the leech, they'll drain all your lifeforce, so your only option is to satisfy them and feed them. Unfortunately, they are also ravenous creatures who are never satisfied. If you feed them a little, they'll want more next time in an endless cycle.
Once you are infected by investors ... eventually they will destroy whatever you created.
You have this semi-backwards. The VC isn't really a leech because Plex pitches the venture fund with a well developed enshittification plan already in place. Assuming everyone is acting in good faith (i.e. the VC doesn't just want to just shut it down and sell Plex for parts), Plex's (enshittification) plan is the reason it makes sense for the venture fund to invest in the first place. Plex promises their plan is why the VC will make an outsized return on their investment and it is what the VC validates as part of their pre-investment due diligence. But that plan is created (and sometimes even put into operation) before any VC investment occurs.
Yes, you got this bang-on. Plex made the decision long ago.
Exactly. Plex could have been “profitable” in the sense that revenue covered infrastructure and paid a handful of full time employees, but that’s not what VC money needs.
There are a few ways Plex could have played this:
The point is there are lots of companies who do this right and don't have such a blatant disregard for the user. In the long run, this will not help Plex, it will help other streaming service helpers who are actually willing to respect users.
I know you're not defending Plex and I acknowledge that. However, I see a lot of "How are they supposed to make their money?" arguments here, hence my description above of just a few models Plex could have chosen instead of f**king the customer.
Yeah. "How are they supposed to make their money" is a question that I'm grappling with right now. OSS is hard enough with a straightforward MIT license but figuring out how to monetize in the OSS space (that doesn't always reward nuance), adds a lot of complexity. I'm starting fresh, so I'm not changing anything on anyone... but getting a monetization strategy that is 100% perfect out of the gate is not likely so seeing this vs. a response like Pangolin's is helpful.
That's a good point, and it's one that isn't solved yet in the foss space.
There are some success stories like Blender, and other projects like Thunderbird and KDE who have recently made their model work through voluntary donations, albeit by hiring competent management of such donations. And there are lots and lots of projects somewhere in between.
The interesting questions to me aren't so much about Plex, but the infrastructure behind all the tools we use: NTP on Linux, build tools, ffmpeg libraries, etc. Lots of other companies make products that make money, yet kick back nothing to these.
Would a royalty system work? I dont know.
From my view, a sustainable business model is very different from the way things are done lately. I built and managed multiple successful businesses and making them sustainable is doable without fucking over your customers.
They could absolutely have done a lot better things to gain more income. The important base question here is "how much do they need?" Because software does not have huge ongoing costs but massive initial costs and lower sustaining costs. Of course, large changes or complete makeorvers will be intense but they are not needed in every company.
Once that is clear, they could have started with better public relations, engaging people about the need for a specific sum or recurring revenue. They could have gamified it by selling badges, additional functions, tiers, restrictions on new installations, etc. But they didnt. They chose to paywall existing functions. one. After. The. Other.
Dick move.
So yeah, building a business is no joke but thats not for me.
Really glad you replied. Thank you. Your points are really good ones. I want to build something (software) for myself and the community but also struggle with where to draw the line when it comes to making my product generate revenue too. It's a thing we don't really talk about when it comes to OSS. Maybe we should create a new category called SOSS, (sustainable oss) lol.
Some FOSS projects are supported by having a for-profit company offer turnkey packaging and support for those projects. Look at TrueNAS. They sell nice NAS hardware preconfigured with their software and the profits support the development.
Good point. I wanna point out that plex is not foss. Its closed source software which makes those moves even more idiotic because they could have paywalled new servers and accounts instead or weaned people off from their servers if they use local only, etc.
But yes, one only needs to look at foss projects like lemmy, pixelfed, kde, gnome to see how it is done. This absolutely means you have to have more people than just yourself or you will definitely burn out.
Tldr: some use gov funding, kickstarter, additional features, turnkey hosting, explain and ask for donations, etc.