said 10 months, 3 weeks ago:
I think this discussion missed the point FB had on introducing timeline. It is not to benefit the product of facebook (which is the user) it is to benefit the true client of facebook and that is who generates the revenue and pays for the experience.
Remember the users of facebook are the product, even if hypothetically 100,000,000 people leave FB over “timeline” then the 600,000,000 million or so that stay will generate more revenue that the 100,000,000 leaving lost.
From what I understand, FB made about $3 per user in revenue (before timeline). The advent of timeline and the information they are now retaining and tracking this number should jump by 30% or so. Simple math 600,000,000 x $4 as opposed yo 700,000,000 x $3… or 2.4 bil vs 2.1 bil (note also, if people leave, cost goes down, while revenue is going up).
FB product is the social graph, they are big brother. The advent of timeline gives FB more information about you and when you do things. They now know more about you, and that is the real FB product. If you enjoy it less, but continue to use it or the majority of users continue, they are making more money.
TImeline will not cause 1/3 of the FB community to leave, so they win.
Expect substantial changes to FB on an anual basses now, they need to keep stock holders desire for more revenue quenched. 15-20% year over year.