• iTunes replaced the record store for distribution of Music
• Netflix replaced Blockbuster as the distribution for Movies’s
• Amazon replaced Barnes and Noble as the distrubtion for Books
• People will pay to read content that matters to them - Micropayments or subscriptions to Online News (WSJ, NYT)
• Google is not evil, but blind love of Google will lead to evilness.

I’ve been neglecting my blog here for some time, but I had this saved as a draft and based on many of the conversations I’ve had in the past few days, I felt that this brief thought captured some good points. Content doesn’t come from Google, it comes from people. Some of those people are professional journalists, but many of them now are just regular “Joe 6-Packs.” You and me posting our thoughts, our pictures - all of us out here sharing our lives.

Regardless of where it comes from, Google doesn’t create any of it and its not claiming it does. Google is out organizing information, which is one form of content. And as we grow less mindful of where our content comes from, or even who is creating it, the medium loses its value and we simply consume content in whatever form it appears in front of us. For me, I see the web as finally having caught up and mimicked our physical world experience with word of mouth. Twitter and Facebook have taken an innate human action, word of mouth, and amplified it online. Almost none of the content I consume comes from Google (except when I am seeking specific information).

My point is that content comes from the people around us, and when we watch, listen or read something that is very interesting to us, it doesn’t often matter who made the content - we remember who told us about it, or where we found it. In todays world wide web, where we found it is rarely on Google, it is from within our social network of friends and acquaintances.

I’ve heard something about this social graph idea…

As a preface, the guys who started Twitter are brilliant, they created a service which no one realized they wanted, and turned it into hundreds of millions of dollars of investment, and created an entire ecosystem based around sharing links, emotions, and whats happening right now. They have built a cultural phenomenon, I just don’t believe it will last, at least in its current form.

Twitter has been aggravating me of late.  It seems to be full of self-promoting and self aggrandizing on a scale never seen before. The annoying part is that almost none of the “social media experts” on Twitter are even slightly aware of their actions, and seem to be completely oblivious that their “buy from me” spewing is just a new form of spam.

Yes there are many people sharing useful information and generally contributing to the society that exists within Twitter, but they are getting fewer and farther between. What really bothers me about Twitter is not its populous, but its Soapbox promotion of these experts. That soapbox has people yelling very loud, and as PT Barnum learned, if you yell loud enough some people will listen.  See trending hashtag of the #shooturself - these people are not adding anything.

Twitter holds in itself what Twitter seems to believe to be a new version of Alexander Bell’s telephone. Only they don’t own the lines, or the devices, or even the technology that it runs on. It is just a set of protocols, basically serving as a communal text messaging platform. That observation isn’t news, but what I’m getting at here is that Twitter’s use as a business to its owners and investors is purely as a utility. If it tries to be a media company, it will fail, because it is a fad. A fad that didn’t even truly go mainstream yet, it just caught on with the people *trying* to be cool. Twitter is like the person who used to operate the local switchboard for the telephone companies, as soon as the telecoms figured out how to automate that process, those people were no longer needed. As soon as we figure out that real time sharing of information doesn’t have to all go through the same service, Twitter is toast. What I’m doing right now has nothing to do with Twitter.

There is significant value in the positive information that I garner from my daily perusing of Twitter. Links are great, and the people that I’m interested in the techworld share useful and valuable information daily. But all of that is information I could easily get from RSS feeds, friendfeed, facebook, or a multitude of other options (new services are appearing everyday - like Google Buzz). Right now Twitter holds the illusion of control over that data exchange, but in reality, Twitter is simply the latest iteration of information exchange via the web. First came email, then the http protocol, then instant messaging.  All of those are utility-type services that you can get for free and as soon as another service comes up and reveals that Twitters “control” is merely an illusion, users will shift, and along with them, Twitters value will - from ~$1 billion to zero.

Twitter is as much a business as email is a business. Making email better might be a business, and all of the great auxiliary companies built on Twitter are great businesses, but providing the protocols to send a message across the web is not a business. Well, maybe it was in 1997, but I believe we’ve moved on from that.

Sharing information that is valuable to me, is an important part of our open society, and I believe that Twitter has value, just as email and instant messaging have value - those services are still around today - and flourishing. Those services are not being monetized however, and are corollary parts tied into more extensive offerings.  Twitter has the ability to make it as a large company, but I don’t think its heading down the right path. Right now its walking down that path like its the cock of the walk, and I certainly doesn’t deserve that posture.

A lot of people wonder how Twitter is going to make money. They certainly have alot of options considering the mass of loyal users they have, but choosing the right one will be key to them transistioning from a cool tool, to a useful and sustainable product. I believe that Twitter will have to charge its users to use it, at least business users (companies) and that Twitter will grow into more of a utility than an application. Just like telephone lines.

Roughly 134 years ago, Bell and Watson struck a chord across some wires and invented the first practical use of the telephone. It would revolutionize the way people communicate, making the world smaller, in an instant you could speak to someone on the other side of the earth. (of course they still had to build that network..) But here we have twitter, and it provides the same type of utility that phone lines do, or email. It is revolutionizing the way people are communicating with each other, only this time - the network (the internet) is already built.

In creating their new Twitter 101 guide to using twitter for businesses (http://business.twitter.com/), twitter is taking its first step in the direction of charging businesses to send specials and deals out to their followers/customers. And that makes sense, particularly if they begin to implement freemium upgrades, additional features, and perhaps guidance and service upgrades for small companies.

The freemium model has worked online for years now, and many of the most successful companies use it to lower their customer acquisition cost to near zero. Its an interesting idea for Twitter, I’m looking forward to seeing how they execute. I know for a fact that, and I’ve seen it first hand across several dozen small businesses - Twitter offers a great service to gain and bring back your customers quick and easy. And thats something worth paying for.

I am spending my first trip to San Francisco working and taking in the culture. I’ve been attending SMX West, getting some great knowledge, meeting some really interesting people and really exploring the power of Twitter. I installed tweetdeck so I could monitor the conversations happening in other sessions. I made some new friends through the online conversation, then I met them offline after the sessions. The world of SEO is a funny one and there are some pretty clear thought leaders in the field. Its exciting to be meeting and learning from them out here.

The real takeaway I’m getting from this was accentuated by a second post from Fred Wilson I just read with my morning coffee. Its about Status (facebook/twitter status) and how it is quickly becoming integrated into our social fabric. In a way it is sort of becoming our social fabric. I explained to my girlfriend why Twitter is interesti by relating it to Facebook Status, or Gmail/AIM away messages. In college I would put real thought into my away message when I went to class/lunch/out. Some people would be “boring” and put “class” up, and others would say things like “enduring another endless rant form my crazed finance professor” - Thats interesting, and its not a need to know, but it can make me laugh and it can make me want to meet someone I might only know through class or passing in the hall.

As more and more people are using Twitter and more and more functionality becomes available through their API, its only going to get cooler. And the potential to integrate a single update to your Twitter account and your Faceboook is really exciting! We are working on a solution to this right now, and its going to be live in a few weeks (focused on getting small businesses involved). Twitter is just so freakin cool, there’s no reason anyone should be afraid to jump in.

Fred’s posts are typically very inteligent and this Status post (read along with Truth) is certainly no exception. But today I feel extra energized to be involved, even in just a tiny way as a user, in this media revolution thats occuring. Its happening right now and i fantastic! Maybe its the atmosphere out here, maybe its just this week immersed in my geek side of life, but I think its all of those things and just a general feeling that better things are coming.

For now, I’m going to keep living my life 140 charachters at a time and I’m going to get as many people I can to start doing that too. Because the more people who are contributing the better the interaction will be, the better the content will be and the better off we all will be. If I can get my girlfriend to twitter, I can get you too…

Over the past week several of the major players online have announced the opening of their social networks. MySpace’s “Data Availability,” Facebook Connect, and Google’s Friend Connect. While I am slightly skeptical about the immediate implications of these new applications, the long term ramifications are huge. I have been searching for a way to prevent users from creating a new login, a new identity, and the overall hassle of creating another account with in our community. And here I am today with several options before me.

Of course, in typical media war (in this case social media) fashion, everyone is quick to announce their latest and greatest new development, with out actually releasing it.

“We expect that Facebook Connect will be available publicly within the next several weeks.” - Facebook Official Release;

“With Google Friend Connect (see http://www.google.com/friendconnect following this evening’s Campfire One),” - Official Google Release;

these both come a few days after MySpace’s annoucement regarding their new data availability program. The reason for the haste, is fairly obvious, but it is absurd nonetheless. I digress…

The huge potential impact of these new programs brings a solution to many developers’ and publishers’ dilemmas: “how do we reach social users with out disrupting them out of their routines?” Well here it is, now we can allow users to log in using their original passwords, allow them to quickly, easily, and natively bring their friends with them and truly build on the idea of an open social network and create true connectability across websites.

I am extremely excited about this and will have at least one if not all three of these new technologies up and running as soon as they become available and I have a chance to figure them out.

Ahh, the cure for my login addictions (well, maybe not..)

Do you have log in addiction? I’m pretty sure that everyone I know has log in addiction, and the growing influence of social media online is only compounding our problems. Do you find yourself refreshing gmail to see if you have any new emails? Logging into facebook to check the updates? Refreshing your homepage to check for any updates on your RSS? I do, and so do you.

Seemingly every day I come across something new to sign up for, log in to, and then gage my response from. Do any of these applications actually add value to my life? - That is the question on many people’s mind these days, but does it really matter? As all of these new sharing programs emerge and millions of people are logging in every day, what is the world coming to?

My question is how will all of this ever be monetized? There is no way to charge for it, because users will immediately reject that and move to a similar and equally useful/less service that is free. Do we fill the application with advertising? If so, how do we measure the value and effectiveness of these ads? Will marketers really want to pay to reach these tiny niche markets that have suddenly become giant flat, almost muddy, fields?

As I sit here writing this I have 5 other tabs open on my screen, all of them require a log in, a sign up, an email, a profile, something to connect me to all of the anonymous users out there pleasantly sucked in by their ceaseless need to log in. But what is the value of this to me? To you? Facebook has billions of pageviews a month, yet they are losing money. Sure the potential value of those views is huge, but how will they make it happen. What will be done to address these revenue models?

Five websites I’m on. Simultaneously. Two of them have advertising on them. Three of them do not. Why do these websites exist, and how are they going to make money.

If you build it they will come… well if they come, how will you get them to stay long enough to make money? The answer is simple - login addiction. We love connecting ourselves so much, in this increasingly disconnected world, that we will try anything that is fresh, cool and can keep us in touch with the people we care about.

Facebook, Gmail, MySpace, Blogs, Forums, Chat Rooms, Twitter, YouTube, on and on and on, until we stop liking each other. Oh, by the way, don’t forget to subscribe to my RSS feed…