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Why Facebook's Network Effects Are Overrated

An anonymous reader writes with this excerpt from a contrarian take on the power of Facebook from hacker Benjamin Mako-Hill: "A lot of people interested in free software, and user autonomy and network services are very worried about Facebook. Folks are worried for the same reason that so many investors are interested: the networks effects brought by hundreds of millions of folks signed up to use the service. ... Facebook is vulnerable to the next thing more than many technology firms that have benefited from network effects in the past. If users are given compelling reasons to switch to something else, they can with less trouble and they will. That compelling reason might be a new social network with better features or an awesome distributed architecture that allows freedom for users and the ability of those users to benefit from new and fantastic things that Facebook's overseers would never let them have and without the things Facebook's users suffer through today. Or it might be a sexier proprietary box to store users' private information. It doesn't mean that I'm not worried about Facebook. I remain deeply worried. It's just not very hard for me to imagine the end."

6 of 183 comments (clear)

  1. Data ownership by Martz · · Score: 4, Insightful

    Users don't care about who owns their data.

    Sit down with the average user and explain to them that Facebook owns their comments, photos, videos, metadata - and they totally don't care. Suggest to them that Facebook might start charging the user for the service (obviously they won't) and the user will freak out as that costs them something real and tangible.

    The author of this article is basically saying that Facebook is vulnerable to failure because the mass of people might leave and join another service. The reason for that happening would be to join a free and open network, but as I stated before (without evidence) most users don't care about a company owning their data anyway - so it's not going to happen.

    For Facebook to fail it has to stop innovating and offering new features, and a competitor has to come up with something new and cool. People will not "leave" Facebook - they'll sign up with the competitor and forget to go back to Facebook to check on what's going on.

    Facebook is going to be around for a while yet, regardless of if geeks "get it" or think it's worth something.

    1. Re:Data ownership by Lisias · · Score: 4, Insightful

      Facebook *is* going to turn out like Myspace - I just don't know when - perhaps not in my lifetime.

      People are always looking for the next big thing - and the satisfaction saturation (that precedes boredom and the desire to change) are reached exponentially faster after each change.

      Orkut lasted almost 10 years. Perhaps Facebook will face its book, I mean, its nemesis in 6. But I don't think it will manage to last more than 10 years.

      --
      Lisias@Earth.SolarSystem.OrionArm.MilkyWay.Local.Virgo.Universe.org
    2. Re:Data ownership by rev0lt · · Score: 4, Insightful

      I'd say that, after the unsurprisingly disappointing IPO, the infinite money faucet has closed. Give them some months to settle, and then you'll start to see less monkeying around new features and more commercial focusing. People didn't buy Facebook shares to "finance the vision". They bought them to make money, and for that, they need to have a business model (and I really doubt that advertising - at current levels - is enough to keep the lights on).
      When they start to put more ads, when some new features start to be paid, it will be the beginning of the end.

  2. Re:When facebook came out ... by Anonymous Coward · · Score: 5, Insightful

    There was a time when it all made sense. When I first signed up for facebook, it was only people at my university and a handful of other universities. People at other universities could see that you exist, and could message you. You could set your privacy so that only people from your university could see your info. This made sense in the context of not knowing what Facebook's future plans were. At the time it was a very convenient way of keeping up with people you met on campus. Honestly, facebook was ruined when they let the masses in, but it's obvious now that that was their plan all along. When they let the high schoolers and the unwashed masses in, I was reminded again of Eternal September on USENET.

  3. Re:When facebook came out ... by Anonymous Coward · · Score: 5, Insightful

    The IT lifers on slashdot don't get it, but the average person doesn't give a rats ass about privacy. If you do? Don't share anything of value on Facebook, just use it to interact with distant relatives, old friends, whatever. Nothing worth griping about on EVERY Facebook article posted here.

  4. Re:When facebook came out ... by Sique · · Score: 4, Insightful

    Actually, about 10% of the human race like it. That's the actual number of accounts compared with the size of the human population. That means that 90% of the world still doesn't have an account with facebook.

    --
    .sig: Sique *sigh*