December 24, 2012
The Biggest Threat to Facebook
Sangeet Choudary, The Next Web
Network effects are the holy grail for Internet startups looking for venture-scale returns. On a platform with network effects, the value to a user increases as more users use it. Facebook, Twitter, LinkedIn, YouTube, Skype and many others benefit from this dynamic.
2012 will go down as the year when a billion people were connected over a single platform for the first time in history. But as online networks grow to a size never seen before, many question their sustainability and believe that they are becoming too large to be useful.
TAGGED: social networks, Facebook