Subscriptions Could Be Key to Social-Media Companies’ Futures

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Heard on the Street: As social-media companies report lower revenue, the best investment right now could be the one users are willing to pay for.

Consumers are spending a record number of hours on social media, but the platforms have had difficulties.

Long booming online ads businesses, historically the predominant way social-media companies made money, have cratered this year thanks to a weakening economy and Apple ’s ad tracking changes that have made it more difficult for platforms to demonstrate return on advertisers’ investments.

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