Hacker News new | ask | show | jobs
by joecot 1097 days ago
Correct. In general it's a good capitalist scheme. Start with a mostly open platform, court third parties into making tools that make it significantly better, get your user base. Then kill the third parties to consolidate power.

It worked for Facebook. It worked for Google Chat. It's failing for Twitter, and for reddit, for the same reasons. They did it too quickly and without the finesse needed to prevent a revolt. Instead of cranking the pricing, they needed to do what Facebook and Google did -- slowly degrade the integration system until it was unusable, start restricting features, add features incompatible with third parties, etc, until the third parties all give up and the API dies a seemingly natural death. reddit just doesn't have the foresight or planning to pull off most plans, including nefarious ones.

But it didn't work for Gmail. Despite Google's best efforts, email still exists outside Google. If we want to avoid playing this Fark->Digg->Reddit game again, we need an open standard that doesn't rely on a single company, like email.

2 comments

I don't think it's so much about consolidating power as it is that this is the natural choice for companies that primarily monetize through ads. I've always felt that it would be better for these platform companies to instead try to monetize the app ecosystem. Start by charging for the API with a generous free tier instead of going down the ad supported route.
Embrace, extend, extinguish.

Microsoft used it like a scalpel and a hammer for decades.