Facebook, Zynga, and buyer-supplier hold up

Chris Dixon: If buyers of traffic (e.g. app makers) fear future hold up, they are less likely to make investments in the platform. The biggest mistake platforms make isn’t charging fees (Facebook) or competing with complements (Twitter), it’s being inconsistent. Apple also charges 30% fees but they’ve been mostly consistent about it. App makers feel…

Chris Dixon:

If buyers of traffic (e.g. app makers) fear future hold up, they are less likely to make investments in the platform. The biggest mistake platforms make isn’t charging fees (Facebook) or competing with complements (Twitter), it’s being inconsistent. Apple also charges 30% fees but they’ve been mostly consistent about it. App makers feel comfortable investing in the Apple platform and even having most of their business depend on them in a way they don’t on Facebook or Twitter.

I have nothing but respect for Mark Zuckerberg and the company he created out of Facebook. At said he is at a critical point in business where he has to decide how much he cares about profitability versus sustained success. I think if they keep secretly screwing users privacy and app developers profits they are not long for this world.

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