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Is Facebook too big to fail? Let’s ask Yahoo…

Yahoo! used to be king of the hill, but innovation from smaller startups and a failure to adjust led to its downfall. Can the same happen to Facebook?

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It wasn’t too long ago Yahoo! was on top…

So many people believe that Facebook is invincible, while others think they’re just the flavor of the month (or decade, whatever). No matter where YOU are on the spectrum, consider this – Yahoo! has evolved into something totally different than what their core competencies once were. And ironically, their old functions look a lot like Facebook’s (groups/chat rooms, email groups, messenger/email, news streams, and so forth). Yet, here we are, talking about Yahoo’s demise, so what makes Facebook so immune?

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It’s tough to be king

Consider: Almost since its beginning, Yahoo! has dealt with a classic innovator’s dilemma. It got so huge so quickly, it became trapped by its own success. When you have hundreds of millions of mainstream users you don’t want to do anything that rocks the boat.

So what happened? Smaller companies with a lot less to lose because they are/were not yet dependent on big business took the risks and rolled the dice, and eventually those smaller companies (Google and Facebook are great examples) became much bigger companies that ate into Yahoo’s revenues.

It’s good to be king

Now, Facebook may be dealing with the same problem. It can’t, for example, redesign its site in a really cool, modern way that will appeal to users of 2017, because it would annoy the billion users it picked up starting in 2004 that are still using low-end laptops or inexpensive mobile devices (especially in developing nations).

This leaves it vulnerable to startups that can build social sharing tools optimized for tablets, phones, and computers built with today’s technologies. Those startups don’t need a billion users today to keep growing until they can start taking ad dollars away from Facebook.

The good news, says industry insiders, is that Facebook CEO Mark Zuckerberg seems to realize how much his company looks like Yahoo from circa 2005 and he’s doing something about it.

What’s Zuck doing to keep it 100?

Zuckerberg continues to use Facebook’s massive market cap to make stock-rich acquisitions of startups doing the risky, innovative things Facebook can no longer do with Facebook.com.

Zuckerberg, in the last few years, has spent freely, purchasing Instagram, Whatsapp, and Oculus.

Additionally, as lawsuits pop up against Facebook over exposing children to inappropriate content and so forth, the brand responds. Unlike Yahoo whose chat rooms were the source of many pedo cases and lawsuits which ran that function into the ground as Yahoo drug it out over years. That alone points out a culture difference between the two big boys.

Learning from one’s mistakes?

So why didn’t Yahoo do the same thing a decade ago? The truth is, they tried to. But they made one big mistake that Zuckerberg isn’t making: Yahoo execs worried too much about paying the exact right price for big-ticket acquisitions.

Facebook may find itself (heck, maybe it has already discovered) that it’s core demographic grew up. But before said demographic decided to move on, FB can sleep well knowing there isn’t really anyone who can take it’s place.

Facebook has a unique asset that will grow in value over time – the lifestories of millions of people as they themselves wrote them – and it has barely begun to monetize this asset. As for the interfaces, surely there’s plenty of room for innovation on new screens like mobile phones or through entirely new experiences like Paper. Maybe the PC just isn’t where the action is going to be.

Facebook reminds us of Yahoo, but I say the similarities (at this point, anyway) are strictly cosmetic.

#FacebookYahoo

Nearly three decades living and working all over the world as a radio and television broadcast journalist in the United States Air Force, Staff Writer, Gary Picariello is now retired from the military and is focused on his writing career.

Social Media

Facebook’s Hobbi app was a complete flop

(SOCIAL MEDIA) Facebook seemingly has enough money to throw away projects and apps they know will fail. Hobbi is their most recent flop.

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Facebook failed Hobbi

Due to its abysmal underperformance on the App Store, Facebook is killing their new app, Hobbi, just months after its rollout in February.

Hobbi was the brainchild of Facebook’s New Product Experimentation Team, whose stated purpose is to rapidly ideate, build, and launch experimental new apps – then pull them if they aren’t successful.

Hobbi was designed to help users document their progress on their various personal projects and, well, hobbies. Complaints centered primarily on its threadbare feature offerings. Notably, Hobbi does not allow its users to browse the works of other creators through the app- it only packages media like photos and videos for sharing elsewhere.

A post on the Tech@Facebook blog states that they “expect many failures” from the NPE Team, suggesting that Hobbi was not necessarily intended to last. But you have to wonder… what is supposed to be the point of a tool like this?

Stories are a popular feature on most major social media websites, including Facebook itself. And Instagram (which is owned by Facebook) already allows its users to curate and group posts about whatever they want, including personal projects, hobbies and interests, through their story highlights.

So Facebook created a product that was already made redundant by their existing properties. What is experimental about that, exactly?

Hobbi originally drew comparisons to Pinterest. Both are like digital scrapbooks; Pinterest is a platform for content that inspires creativity, and Hobbi creates progress reports for creative undertakings.

One could also compare Hobbi to the underperforming video streaming platform, Quibi, which recently became infamous for its ostentatious ad campaign, aggressively flaunted celebrity cameos, and ultimately, its overwhelming failure.

Jeffery Katzenberg, Quibi cofounder of Disney and Dreamworks fame, blamed the coronavirus pandemic for Quibi’s flop – a questionable claim, considering just how much free time many have had to binge Netflix’s Tiger King during the lockdown.

The same could be said about Hobbi. People have been taking on projects like crazy in the time that has Hobbi been on the market. Quarantine cabin fever has us baking, crafting, painting, cleaning, and redecorating like never before. Yet Hobbi went nearly untouched.

Nobody used it because nobody needed it. Surely some cursory research would have demonstrated this?

One conclusion is that the app itself was the research – that Facebook’s NPE team isn’t really creating finished products, but rather testing the waters for potential new ones. (Could this framing be an elegant form of damage control, though? It’s easier to say “I meant to do that!” than it is to admit failure, especially in business.)

Still, creating throwaway apps in a bloated industry feels like cheating, whether it was meant for research purposes or not. There are plenty of indie app developers who create great tools with way less funding. Filling app marketplaces with lemons makes it harder for folks to find those gems.

Either way, hopefully we will see some original ideas coming from Facebook’s NPE Team moving forward, because this was clearly a disappointment.

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Social Media

Can Twitter ever secure data privacy, like even once?

(SOCIAL MEDIA) Twitter releases private information affecting already hurting businesses, should this even be a surprise anymore? They have a history of privacy breaches.

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twitter privacy

Dear Twitter,

I don’t know if you’ve seen the news within the past two years, but Facebook’s been under continuous scrutiny for privacy malpractices that affected millions of its users, so unless your goal is to be the next social network to infringe upon our first amendment right to privacy, I suggest you GET IT TOGETHER!

Over the weekend, users, specifically businesses, realized their billing information was being stored in their browsers cache. This is devastating news for business owners who rely on Twitter to promote their product, or stay in touch with their customers, who over the recent months have already faced monumental challenges. It is hard as a business owner to not feel this is an intentional overreach of privacy.

In an age where we have actual robots to vacuum our floors, and 3D printing, I speak for the people when I say this is unacceptable.

This isn’t the first time Twitter has been caught privacy breaching. A little over a year ago, Twitter announced that they were fixing a bug, many weren’t even aware of, that released phone numbers, location, and other personal data. AND GET THIS, even those who selected the option to keep their information private were affected, so what the hell is the point of asking us our preference in the first place?!!!

What about the time that Twitter accounts could be highjacked by ISIS and used to spread propaganda? All because Twitter didn’t require an email confirmation for account access. Or what about when Twitter stored your passwords in plaintext instead of something easily more secure. Flaws like these show a distinct ability of Twitter to just half ass things; to make it work, but not think about how to keep the users safe.

Like I said in the beginning, get it together Twitter.

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Social Media

Facebook’s Forecast wants ‘qualified’ predictions, but no one’s asking why

(SOCIAL MEDIA) Facebook is asking a bunch of so-called experts to chime in on what the future holds, but can we trust them with the information we’re giving them?

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Forecast app

These days, trolls don’t necessarily lurk beneath bridges in order to ensnare unsuspecting travelers. Instead, they hide out in the comment sections on social media posts, ready to incite wrath and stir up controversy with their incendiary remarks. Because Facebook knows how quickly reasonable discourse can quickly devolve thanks in part to these online trolls, they’ve made a move to establish intelligent discussions through their new “Forecast” app.

The premise of Forecast is fairly straightforward. Facebook has invited an assortment of so-called experts (whether they work in the medical field or academia, or some other field) to cast their vote on predictions about the future. Not only will they share their vote, though, they’ll also pitch in their own two cents about these predictions, sparking what is expected to be insightful and reasonable conversation about the topics.

However, while the premise is exciting (smart people! not basement dwellers! talking about serious stuff!), there’s more than a small amount of risk associated with Forecast. For starters, what exactly is Facebook planning on doing with all of this information that is being volunteered on their app? And secondly, are they going to take precautions to help prevent the spread of misinformation when these results are eventually published?

The fact is, Facebook is notorious for propagating and spreading misinformation. Now, I’m not blaming Facebook itself for this issue. Rather, the sheer volume of its user base inevitably leads to flame wars and dishonesty. You can’t spell “Fake News” with at least a couple of the same letters used in Facebook. Or something like that. The problem arises when people see the results of these polls, recognize that the information is being presented by these hand-picked experts, and then immediately takes them at face value.

It’s not so much that most people are simple minded or unable to think for themselves; rather, they’re primed to believe that the admittedly educated guesses from these experts are somehow better, smarter, than what would be presented to them by the average layperson. The bias is inherent in the selection process of who is and isn’t allowed to vote. By excluding everyday folks like you and me (I certainly wasn’t given an invite!), undue prestige may be attributed to these projections.

At the moment, many of these projections are silly bits of fluff. One question asks, “Will Tiger King on Netflix get a spinoff season?” Another one wonders, “Will Mulan debut on Disney+ at the same time as or instead of a theatrical release?” But other questions? Well, they’re a little more serious than that. And speculating on serious issues (such as COVID-19, or the presidential election) can lead to the spread of serious — and potentially dangerous — misinformation.

Facebook has implemented very strict guidelines about what types of questions are allowed and which ones are forbidden. That, at least, is a step in the right direction. It’s no secret that expectation can actually lead to the predicted outcomes, directly influencing actions and behaviors. While it’s too early to tell if Forecast will ever gain that much power, it undoubtedly puts us in a position of wondering if and when intervention may be necessary.

But I’ll be honest with you: I don’t exactly trust Facebook’s ability to put this cultivated information to good use. Sometimes a troll doesn’t have to be overtly provocative in order to be effective, and it wouldn’t be too much of a stretch to see someone in a position of power exploit the results of these polls to influence the public. It’ll be interesting to see if Forecast is still around in the next few years, but alas, there’s no option for me to submit my vote on that to find out.

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