Meta is reportedly developing a new app called “Arena” that would function as a predictions market, allowing users to place bets on a wide range of events. This potential new venture would extend across Meta’s family of social applications, including Facebook, Instagram, and WhatsApp, according to a report from The New York Times.
New App Echoes Past Strategies
The development of Arena is seen by some observers as another instance of Meta adopting a popular app concept and integrating it into its existing ecosystem, a strategy previously employed with apps like Lasso, Hobbi, and Bulletin. Beyond simply cloning successful applications, the report suggests Arena aligns with a long-standing business approach attributed to Mark Zuckerberg’s leadership, which involves capitalizing on what are described as people’s less favorable instincts.
This approach is traced back to the company’s early days. Facemash, an early precursor to Facebook, reportedly scraped Harvard student ID photos and allowed users to vote on who was most attractive. Despite drawing criticism, the site gained significant traction in its initial period. Later, when “The Facebook” was launched, Zuckerberg amassed personal information from students, which he reportedly referred to dismissively in private communications.
Engagement-Driven Design and Profitability
As Facebook grew, the company has been characterized as consistently leaning into strategies that maximize user engagement and profit by appealing to users’ impulses. Whistleblower Frances Haugen has claimed that the company’s algorithms were optimized to foster engagement, even when negative interactions generated more attention. Meta has also faced scrutiny regarding its platform designs, with some court arguments suggesting apps like Instagram are designed to be addictive, a claim Zuckerberg has denied.
The company has reportedly researched methods to maximize user time on its platforms, including experiments on users to gauge reactions to different content inputs. Former employees have suggested that the platform’s design prioritizes delivering “dopamine hits” at the potential expense of users’ mental well-being. The move into predictions markets, a sector known for its addictive potential, is framed by some as a logical extension of Meta’s historical business model, which has been described as profiting from user behaviors and addictions.
Norman Pearlstine is the Chief Editor of News Raise and focuses on Business news. His responsibility is to oversee the editorial content including business, commodities, personal investments and the stock market.
