What is the future of social networks as walled gardens? Steve Rubel ponders the need for social networks to open up in order to become successful over the long term. A social network does not need to be open to be successful. In fact, I prefer if it were closed.
The problem, however, lies in this fact - Facebook gives nothing back to the broader web. A lot of stuff goes in, but nothing comes out. What happens in Facebook, stays in Facebook. As Robert Scoble noted, it’s almost completely invisible to Google. You can share only a limited amount of data on your public page - as he has here. That’s fine for many users, but not all.
You don’t have to give anything to the web to become successful, you especially don’t need to be visible to Google. You just need to make your users happy. Facebook made a great decision when they opened their API to outside developers. Just make sure your users are happy and that they are getting what they want. If AOL and Compuserv had open API’s that allowed small companies to build businesses around their userbase or develop software that worked inside their garden they may still be around. Long term success comes when you create a economy dependant on your businesses success. This is the same reason why Microsoft will continue to be around and why Apple failed to grow during its early, closed API days.
Mixi’s walled garden is a asset but their greatest danger is its closed API. Mixi is fine now because its competitors in Japan are limited. If another player comes into the market and creates a open API, a new economy will develop around that competitor that will quickly erode the companies market share. These small business economies are what drive companies like Amazon, Ebay and in Japan, Yahoo Auctions.
If MySpace Japan is simply a sales and translation force for MySpace USA it won’t be able to compete with Mixi. If MySpace Japan accepts major influence from Softbank, its Japan partner and investor it could pose a danger. However my impression is that unlike Yahoo Japan, Softbank won’t have much sway in platform strategy.
If Mixi opened its API to outside companies it would pretty much eliminate the market for competitors in Japan. On the other hand if it opened up its walled garden it would turn away many of its core users who value their privacy.
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Motivation is weird. I only have a limited amount of it and it expires after a few weeks. Projects that seem exciting become dead boring for no other reason than time. Is it just me?
Here is a explanation of why fiat money works. Its long.
Want to know how to finance a Presidential campaign? It helps if you can charge $175K a month in consulting fees.
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