this is the problem - facebook's value proposition for a user is not Facebook itself, but the ability to interact with another person easily (games, photoshares, pokes etc). However, this isn't actually worth very much money, and to try to extract that from the user is fruitless.
The only real way to monetize is really to sell behavioural data of its users to advertisers. There is real value in that, even if the users don't like it. But its a double edged sword, and this sword is what is going to kill facebook!
Or Facebook could accept a lower rate of monetization and not extend the reach of their advertising. Sure this is a horrible outcome for the share price but could be a better outcome for running a long term sustainable company.
yep. But if you think about the incentives of a CEO (not mark, as its his baby, but just a CEO generally for a company facing this sort of decision), they have every incentive to do a "bad" thing that yields short to medium term benefit, at the cost of long term benefit (coz by then, they would've exited with their millions).
this is the problem - facebook's value proposition for a user is not Facebook itself, but the ability to interact with another person easily (games, photoshares, pokes etc). However, this isn't actually worth very much money, and to try to extract that from the user is fruitless.
The only real way to monetize is really to sell behavioural data of its users to advertisers. There is real value in that, even if the users don't like it. But its a double edged sword, and this sword is what is going to kill facebook!