the Network
Service
the Network
Service
Sean Parker
Web 2.0 Summit
October 22,
2009
the Network
Service
the Network
Service
Why companies like Facebook,
Twitter, Ebay and Apple (but not
Google) will determine the future
of the internet
Companies that Harness
the power of networks
will dominate the
internet
COLLECTING DATA IS
LESS VALUABLE THAN
CONNECTING PEOPLE
WHAT ARE NETWORK
EFFECTS?
value
increases
with n 2
METCALFE’S LAW
value
increases
with n 2
METCALFE’S LAW
value
increases
with n 2
METCALFE’S LAW
Potential Value of Network
increases with n 2
Communicat
ion
Marketplace Networks Games Platforms
s Facebook World of Warcraft Apple iPhone
eBay Twitter Zynga Facebook
Craigslist Skype ForSquare
LinkedIn
INFORMATIONS SERVICES
VS. NETWORK SERVICES
• Information Services
• Google, Yahoo!, CNET, YouTube, MSN
• Core value is collecting and processing
data
• Network Services
• Facebook, Twitter, Ebay, PayPal
• Core value is facilitating a relationship
between people or groups
• Craigsli
st
• MySpac
e
• AIM
• Ebay
CAMPUS WARFARE
BATTLE FOR GERMANY
BATTLE FOR GERMANY
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