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Lava Row is a social media consulting, strategy and education firm in Des Moines, Iowa. These are our adventures. |
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At what point do social networks become utilities?February 20th, 2009 / Posted by Nathan T. Wright
On Wednesday night I had a conversation with Karri Wells about how mainstream (and huge) Facebook has become. You may have read recently that — at 175 million users strong — it would be the world’s 6th-largest country. Facebook has yet to prove a sustainable business model, but if it continues to be so pervasive in culture and society, at what point do we need to shift our perspective of what it is? Social network, or critical infrastructure? Maybe even utility: Water supply, energy grid, interstate system, Facebook.
Time will tell. This video was meant to be a conversation starter, so please add your thoughts below.











View Comments to “At what point do social networks become utilities?”
Alexander Grgurich February 20th, 2009 at 4:12 pm
Great thinking, I think Facebook is getting to be as “indispensable” as a utility, but not quite to the point of government intervention. In theory, utilities are controlled because too many companies fulfilling those needs would be a nightmare (picture 18 sets of cable lines on your block, 6 sewer systems underground, private toll roads everywhere). Since redundant social networks don’t lead to nightmares like that, the market theoretically sorts things out.
It’s definitely true that powerful social networks are moving to that status of power though.
Andy Brudtkuhl February 24th, 2009 at 12:30 pm
I think the market (IE social network space not economic market) is too cyclical and unstable to become a utility. There are too many niche networks and trending fads to for it to become utility – there are too many choices.
Is Facebook and other social networks a commodity? Yes. But a utility? I think we are pretty far off from that.. The “internet” is yet to be a “utility” even though many have tried – through municipal movements and such.
Let’s hope it does not become utility… Not only will that curtail innovation … the last thing we want is a regulatory body controlling online social networks..
Jason Kiesau February 25th, 2009 at 8:16 pm
Nathan,
Nice post. I love the video blogging. What you’re talking is interesting. Do you think it will ever get to the point where there is an expense? Wouldn’t the advertisers make up for that? I know that wasn’t the point of the post . . .
Being newer to the world of blogging and even to Facebook it’s interesting hearing perspectives from people like you, Mike Templeton, Mike Sansone etc.
As a newer business owner and trying to stay away from old school sales practices such cold calls and certain networking opportunities, through LinkedIn, Twitter, Facebook, blogging . . . I am hoping to capitalize on changing times and hopefully be on the cutting edge of the new way of doing business.
I would love to get your thoughts . . .
Anyway . . . great stuff. Thank you!
Brad Hoyt March 2nd, 2009 at 10:43 am
Facebook is clearly not a utility. no matter how much they wish it were.
@Andy Brudtkuhl – the internet is a Utility, just not a regulated utility. The fight over net neutrality is precisely because the internet has become a utility and unfortunately regulation is not far off.
Facebook is working hard to monetize their property. Some aspects of Facebook could become a utility (if Facebook has their way), like Facebook Connect. That’s a scary thought especially given the fungible nature of the Facebook experience. We need to ask ourselves if we trust Facebook to be the utility that manages our digital identities.
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