The lesson I take from this is that no matter how wonderful your walled garden is, it can’t compete with the public, open internet. Jason Kottke explains:As it happens, we already have a platform on which anyone can communicate and collaborate with anyone else, individuals and companies can develop applications which can interoperate with one another through open and freely available tools, protocols, and interfaces. It’s called the internet and it’s more compelling than AOL was in 1994 and Facebook in 2007.
Faced with competition from this open web, AOL lost. Running a closed service with custom content and interfaces was no match for the wild frontier of the web. Maybe if they’d done some things differently, they would have fared better, but they still would have lost. In competitive markets, open and messy trumps closed and controlled in the long run. Everything you can do on Facebook is possible using a loose coalition of blogging software, IM clients, email, Twitter, Flickr, Google Reader, etc. Sure, it’s not as automatic or easy, but anyone can participate. The number of things to see and do on the web outnumbers the number of things you can see and do on Facebook by several orders of magnitude – and always will.