I leave tomorrow for 3 Days in Las Vegas (woohooo I hate las vegas!!!….Seriously. Scroll past the article, I’ll explain) but I wanted to churn out this post before I left. By the time I return, App.net‘s funding campaign will have concluded. At that point, we will know whether or not Dalton Caldwell’s brilliant proposal will have succeeded or failed. I have personally supported the project and believe in its values. I also believe in Dalton (without personally knowing him) as he spent many years trying to bring innovation into the music business (which I care deeply about) in the form of Imeem. Twitter’s Platform decisions have been written about all over the web, by people more intelligent than me. Still, I wanted to chime in with my own opinions before the funding deadline is reached.
The Twitter Phenomena… A Live Social Stream Is So Important
Here’s the backstory: Many prominent social platforms (twitter, facebook, etc) deliver tremendous value to their user’s through 3rd party access to their APIs. Essentially, external developers can build on top of these platforms in the form of games (think farmville), applications (spotify), and other constructs. What this does for the user is create a much richer online experience. An open API also brings value to the actual platform developers, as so much more content is delivered to their users without additional expense. Innovation can happen at a much greater rate when the platform is open. Everybody wins.
Once attaining a critical mass, these Social Platforms naturally begin to think about money and profitability. So, they turn towards the only established model of income for such ventures: an ad-based revenue model. Now, in an ad-based revenue model, success is predicated on the # of page-views. This directly conflicts with having an open API and platform, as many of the 3rd party applications built upon these social platforms direct views away the platform to the outside sources. So, instead of having 3rd party developers built on the social network’s platform, keeping development in-house keeps page views on the platform. Then, the shutdowns begin. Facebook’s API became more restricted. As did Twitter’s. These restrictions threaten the entire 3rd party development ecosystems that the platforms support.
Dalton Caldwell has proposed a whole different system for funding social platforms. Instead of using an ad-based revenue model. He proposed straight charging users for entry, as well as charging developers to build application on the platform. This kind of premium live social stream has its pluses and minuses. The downside (and what many credit with what will be a failed fundraising period) is that users have to pay to gain access/membership. The upside (and the part I STRONGLY agree with) is that charging users and developers will allow the platform to retain its integrity! It will not shut out 3rd party developers who threaten page views and it will not become an ad-riden experience as Facebook has.
Yes, it will cost us users money. But what fantastic experience doesn’t?!?!?! I enjoy paying for Spotify Premium. I like having an ad-free experience.
The consumer internet is still relatively young, and it is definitely still evolving. I believe the initial push-back from consumers against online services that required membership fees was because they weren’t receiving enough value in exchange. Also, many of the physical services were overpriced before the Internet (CD’s and Music). So when the option for free digital versions arose, consumers leapt at the opportunity.
Free, ad driven models have become the norm. But, people will pay for greatness. People will pay for great services. Hell, look at HBO. Sure, Youtube offers free video content. And, HBO is disrupting the hell out of mediocre television. But, people are more than willing to pay for HBO’s additional content. The free option of Youtube entertainment hasn’t touched HBO. Thus is the power of premium experiences.
App.net is striving to create a premium experience of a social streaming platform. One with integrity. One that will not go back on its promises once it attains critical mass. The business plan allows for this. So take a leap of faith. Donate.
Screenshot of my App.net
They’re so close. Be a part of the future, for even though free is the present model, it delivers shitty products. Instead, lets move toward the future. Where premium costs deliver premium content.
Vegas Post Script Haiku:
I Hate Las Vegas
Gambling, Stress. Drinking, Stress.
Free Trip, So I Go. 🙂
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