This is absurd on it's face. The marginal cost of software has been 0 for almost three decades ( arguably, it has 0 marginal cost by definition). That didn't st

This is absurd on it's face. The marginal cost of software has been 0 for almost three decades ( arguably, it has 0 marginal cost by definition). That didn't stop Microsoft from becoming one of the largest, most successful companies in the world. The issue with social media is the lack of barriers to entry, plus the limited value offered by most social networking sites. If I want to interact with my friends, usually I will just call them. Facebook is a fun distraction, but it is not providing me with a service I value enough to shell out cash for, and if they did charge, everyone would just pick up and move on (cf Friendster, not that they charged but that users left en masse).