SAI points to an interesting piece by Chris Dixon, founder of Hunch, in which he argues that Twitter will inevitably be competing with its core developers (complements to Twitter) at some point. This is always true for development ecosystems, however, and I don't think, in fact, it will be as…
SAI points to an interesting
piece by Chris Dixon, founder of Hunch, in which he argues that Twitter will inevitably be competing with its core developers (complements to Twitter) at some point. This is always true for development ecosystems, however, and I don’t think, in fact, it will be as bad as Chris claims. His argument:
At some point, significant (non-VC) money will enter the Twitter ecosystem. I have no idea whether this is will be by charging consumers, charging businesses users, search advertising, sponsored tweets, licensing the twitter data feed, data from URL shorteners, or something else. But history suggests that where there is so much user engagement, dollars follow.
For the sake of argument, let’s suppose Twitter’s eventual dominant business model is putting ads by search results. Who gets the revenue when a user is searching on a 3rd party Twitter client? Even if Twitter gets a portion of revenue from ads on 3rd party apps, there will always be an incentive for them to create their own client app, or to “commodotize” the client app by, say, promoting an open source version.
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