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Facebook Has a Big Tobacco Problem
- brudgers 9y agoThe big problem at the heart of the Big Tobacco Problem was that big tobacco could not change direction in light of new information and remain big tobacco. Sure RJR could buy Nabisco and eventually merge and rebrand as Alitra. But big tobacco is dependent on selling tobacco to make money. Facebook can stay Facebook by changing how it handles advertising. It could eliminate advertising revenue and replace it with subscriptions revenues. It might even be possible for Facebook to derive all its revenue from selling/renting software and data services. Something like AWS or IBM where interaction on the social graph provides data for valuable algorithms for uses other than advertizing.