Re:The Fall of Facebook
by williamcotton on Thursday November 20, 2014 @02:46PM
(#8637702)
I agree that it is a utility. However unlike water or electricity, Facebook is free service subsidized by advertisements. That's a pretty horrible business model because they have to extract value from their users by reducing their privacy, controlling their information and identity, and cluttering their communication channels with noise.
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> That's a pretty horrible business model
It hasn't has yet proved to be an unsuccessful business model though.
Re:The Fall of Facebook
by williamcotton on Thursday November 20, 2014 @03:12PM
(#8637862)
Because their main costs are detached from their main revenue streams they have no way to accurately price how much a user costs them and how much value they provide. That's what makes it a horrible business model. How do you optimize what you can't accurately measure?