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It's gonna bite us in the ass pretty soon, because the direct consequence of this effect is that the ability to launch a successful network depends on marketing
by kace91 7y ago
It's gonna bite us in the ass pretty soon, because the direct consequence of this effect is that the ability to launch a successful network depends on marketing - you need to achieve a critical mass of users pretty much instantly, since each new user won't stay for more than a day or two if their friends and content aren't there. That requirement forces potential new tech to have massive backing by a strong entity like a tech giant.
I wonder if we'll end up seeing state actors (or supranational entities like the EU) promoting state funded networks as a public alternative, as is sometimes the case in industries that tend to be monopolistic due to the cost of starting - transportation, telecommunications, etc.
- vmurthy 7y ago> I wonder if we'll end up seeing state actors (or supranational entities like the EU) promoting state funded networks as a public alternative, as is sometimes the case in industries You make a good point but I'd like to think of it this way: If the said service is made mandatory, then it has a chance of succeeding. Else, building that critical mass entails a lot of customer acquisition costs that a Govt may just not be in a state to justify. And therein lies the beauty and danger of network effects. Once a company has them, it is very very difficult to dislodge it. Look at Visa and Mastercard: V has been around since 1958 and MC from 1966. Both are valuable as they have network effects.