Ep. 6 - Case Studies: Network Effects In Action (NFX Masterclass)
The NFX Podcast
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Facebook - The Big Kahuna of Network Effects
23 or 24% of all the ad revenue spent online comes through Facebook. In 2011 they launched Facebook Messenger which actually has utility when it's often about getting things done and then in 2014 they saw WhatsApp And WhatsApp was this personal utility direct network effect It says it has 450 million monthly active users even just independently. This is going into the area that craigslist has owned for years. They've been impenetrable but perhaps Facebook with their real identity might be able to pry that mark and open So this makes Facebook the big Kahuna of network effects. If there is a threat to Facebook, we see it coming possibly from three directions Now the first would be if Facebook becomes a public health
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