Are Twitter and Facebook doomed?
I have found a great article about the foreseeable doom of Facebook, Twitter, and any other freebee social media sites. At what point is it no longer practical to offer free services (bandwidth, storage, personnel) for free with out a business plan to ensure some sort of income? Venture capitalists who back these sites like to make money, at what point to they decide that they have spent enough in these investments and bail out? AdAge has a full article on this here.
A Credit Suisse report estimates that YouTube lost almost half a billion dollars (yes, that is $500 million). That is a lot of missed opportunities. But it is as not as cut and dry as just blasting sites with advertising. Facebook has been having more success than the rest. There was minimal backlash for ruining the innocence of the site. Now things are fine, and Facebook is getting some income. How will Twitter fare? When will YouTube get their ducks in a row?
Can these social media sites get it together enough to make a profit and not lose all their followers in the process?