A Fee-Based Twitter Is No More Ideologically Pure Than An Ad-Supported Twitter
from the drop-the-crap dept
First of all, I think it's great that we're seeing alternatives and someone like Caldwell trying to do something different. More competition is something I always think is a good thing, and I'm happy to see more players in the market trying different ways to do something. If anything, hopefully it will drive Twitter to stay more focused on providing a great service.
But I do have a complaint: Caldwell and others seem to be acting as if this fee-based effort is somehow more ideologically "pure" than a free-based system that makes money on ads. You can see it all over the website and especially in the video announcing the launch:
- First off, App.net's interests are not economically aligned with its users. It wants money from those users, and all things being equal, those users want to keep their money. So their goals are actually diametrically opposed. Who's to say that App.net will always cost $50 per year? What if, a year from now, it needs a lot more to keep the service going. App.net has incentives to figure out ways to raise the price to bring in more money. Now, that's fine. That's how businesses work. But to suggest that the economic interests are aligned is simply not true. Coldwell argues that the interests are aligned because it now has to make the service as good as can be so that users will want to pay. But the same thing applies to free-based services, as we explain in the next point...
- A free-based service, supported by advertisers, has tons of incentive to keep its users just as happy as a fee-based service. Why? Because if it doesn't, people go elsewhere and the advertisers go with them. If the advertisements are too annoying and/or intrusive, people will go away and the value of that advertising drops. Any smart media property knows this, and actually works quite hard on keeping the user experience as good as possible, which quite frequently means pushing back against the desires of advertisers. Caldwell acts as if all such companies immediately give in to any ad company desire, which is either spoken from ignorance or out of a desire to misrepresent reality to benefit his own effort.
So, please drop the moralizing about App.net being more pure. It's not. It's economically interested in taking its users' money. That's not that much different than a site that's economically interested in taking advertisers' money.