Why Facebook’s privacy problem may be fatal

Everything you need to know in a nutshell. From Bruce Nussbaum, writing in the Harvard Business Review.

Facebook’s imbroglio over privacy reveals what may be a fatal business model. I know because my students at Parsons The New School For Design tell me so. They live on Facebook and they are furious at it. This was the technology platform they were born into, built their friendships around, and expected to be with them as they grew up, got jobs, and had families. They just assumed Facebook would evolve as their lives shifted from adolescent to adult and their needs changed. Facebook s failure to recognize this culture change deeply threatens its future profits. At the moment, it has an audience that is at war with its advertisers. Not good.

Here’s why. Facebook is wildly successful because its founder matched new social media technology to a deep Western cultural longing — the adolescent desire for connection to other adolescents in their own private space. There they can be free to design their personal identities without adult supervision. Think digital tree house. Generation Y accepted Facebook as a free gift and proceeded to connect, express, and visualize the embarrassing aspects of their young lives. Then Gen Y grew up and their culture and needs changed. My senior students started looking for jobs and watched, horrified, as corporations went on their Facebook pages to check them out. What was once a private, gated community of trusted friends became an increasingly OPEN, public commons of curious strangers. The few, original, loose tools of network control on Facebook no longer proved sufficient. The Gen Yers wanted better, more precise privacy controls that allowed them to secure their existing private social lives and separate them from their new public working lives.

Facebook’s business model, however, demands the opposite…

Worth reading in full.

How (and why) Facebook is sharing people’s secrets with the world

This morning’s Observer column.

If you think that privacy is an abstract concern of EU bureaucrats and libertarians with too much time on their hands, then might I suggest that you consult youropenbook.org. This is an ingenious site which allows you to type in a search phrase. It then ransacks the publicly available Facebook “status updates” and displays what it finds.

A search for “I cheated”, for example, brings up all kinds of intriguing stuff. A nice young woman from Baltimore posted “dam right i cheated i coulnt get it from u wen i needed it”. There’s also the odd potentially embarrassing reference to cheating in exams. A search for “I lied” brings up updates like “I’m sorry, I lied before when I said I used to make lots of bets. My therapist tells me I should try lying a lot to help get through my… gambling problem”. Another writes “im not gonna bother anymore…theres no point hiding the truth…..iv lost too much and all because i lied to the one i love…im such a fukin dick head, i fucked up the best girl i’ve ever had”.

I could go on but you will get the point. All of these people are instantly identifiable. Millions of Facebook users are posting embarrassing or damaging messages which can be read by the entire internet…

Why Twitter is different

This morning’s Observer column.

One of the most intriguing and useful features in Twitter is the "retweet" facility. If you see something in your tweetstream that you think might interest others, then you can click a button to make it visible to the people who are following you. Retweeting has become so commonplace that its conventions have already been the subject of a serious study by the anthropologist Danah Boyd and her colleagues at Microsoft Research. But it turns out that retweeting is not just interesting in terms of discourse analysis; it's also the key to understanding why Twitter is a radically different form of social networking.

We know this because of a remarkable study conducted by some researchers at the Korea Advanced Institute of Science and Technology and published last week at a major academic conference…

Library of Congress drinks from Twitter firehose

When he was in Cambridge to give the second Arcadia Lecture recently, Dan Cohen mentioned that Twitter had agreed to give the Library of Congress its archive of tweets. Here’s the NYT report of that decision.

“Twitter is tens of millions of active users. There is no archive with tens of millions of diaries,” said Daniel J. Cohen, an associate professor of history at George Mason University and co-author of a 2006 book, “Digital History.” What’s more, he said, “Twitter is of the moment; it’s where people are the most honest.”

Last month, Twitter announced that it would donate its archive of public messages to the Library of Congress, and supply it with continuous updates.

Several historians said the bequest had tremendous potential. “My initial reaction was, ‘When you look at it Tweet by Tweet, it looks like junk,’ said Amy Murrell Taylor, an associate professor of history at the State University of New York, Albany. “But it could be really valuable if looked through collectively.”

Ms. Taylor is working on a book about slave runaways during the Civil War; the project involves mountains of paper documents. “I don’t have a search engine to sift through it,” she said.

The Twitter archive, which was “born digital,” as archivists say, will be easily searchable by machine — unlike family letters and diaries gathering dust in attics.

As a written record, Tweets are very close to the originating thoughts. “Most of our sources are written after the fact, mediated by memory — sometimes false memory,” Ms. Taylor said. “And newspapers are mediated by editors. Tweets take you right into the moment in a way that no other sources do. That’s what is so exciting.”

Twitter messages preserve witness accounts of an extraordinary variety of events all over the planet. “In the past, some people were able on site to write about, or sketch, as a witness to an event like the hanging of John Brown,” said William G. Thomas III, a professor of history at the University of Nebraska-Lincoln. “But that’s a very rare, exceptional historical record.”

Ten billion Twitter messages take up little storage space: about five terabytes of data. (A two-terabyte hard drive can be found for less than $150.)

Facebook’s privacy policy: steady, gradual erosion

Revealing Timeline by the Electronic Frontier Foundation.

Viewed together, the successive policies tell a clear story. Facebook originally earned its core base of users by offering them simple and powerful controls over their personal information. As Facebook grew larger and became more important, it could have chosen to maintain or improve those controls. Instead, it’s slowly but surely helped itself — and its advertising and business partners — to more and more of its users’ information, while limiting the users’ options to control their own information.

Danah Boyd on how privacy on Facebook is eroding

danah boyd is one of the sanest and best-informed observers of social networking. This is a good (but too brief) Technology Review interview with her on the subject. Sample:

Danah Boyd: People started out with a sense that this is just for you and people in your college. Since then, it’s become just for you and all your friends. It slowly opened up and in the process people lost a lot of awareness of what was happening with their data. This is one of the things that frightens me. I started asking all of these nontechnological people about their Facebook privacy settings, and consistently found that their mental model of their privacy settings and what they saw in their data did not match.

TR: What’s been driving these changes for Facebook?

DB: When you think about Facebook, the market has very specific incentives: Encourage people to be public, increase ad revenue. All sorts of other things will happen from there. The technology makes it very easy to make people be as visible and searchable as possible. Technology is very, very aligned with the market.

TR: Some people dismiss concerns about this sort of situation by saying that privacy is dead.

DB: Facebook is saying, “Ah, the social norms have changed. We don’t have to pay attention to people’s privacy concerns, that’s just old fuddy-duddies.” Part of that is strategic. Law follows social norms.

TR: What do you think is actually happening to the social norms?

DB: I think the social norms have not changed. I think they’re being battered by the way the market forces are operating at this point. I think the market is pushing people in a direction that has huge consequences, especially for those who are marginalized.

Don’t drink the Kool-Aid

This morning’s Observer column.

Sadly, there is no cure for megalomania. But venture capitalists ought to start funding the search for a cure, because it’s costing many of them a lot of money, and is likely to cost even more in the future.

Here’s how it works. A smart entrepreneur – a Harvard dropout, say, or some guy who made a lot of money by selling off his last venture to some clueless multinational – starts up a web business which grows like crazy by attracting millions of subscribers who use its services for free. Pretty soon, it's got 400 million of them and everyone is saying: “Wow! 400 million users! That must be good for something.”

Then several things happen. Firstly, the proprietor of the sensation du jour starts drinking the Kool-Aid and contracts the aforementioned megalomania. He begins to fantasise that he could own the whole internet. Secondly, thousands of other entrepreneurs think “Wow! He could own the whole internet. We need to make sure our stuff has hooks into his stuff. Otherwise, we’re toast.” And then the mainstream media, whose insights into this could be written in 96-point Helvetica bold on the back of a postage stamp, are going around saying, “Jeez, this stuff is the real deal. How do we get onside?”

Facebook claims that 50k sites have already adopted ‘Like’ buttons

From TechCrunch.

Facebook has just given us an idea of how quickly these widgets are being adopted: a week after f8, 50,000 websites now feature the Like button and the other new plugins.

75 of those websites were Facebook’s launch partners, which included sites like CNN and the New York Times — everyone else handled the integration on their own, which Facebook has made very straightforward (it generally just involves copy-and-pasting a few lines of code). This growth is important, because as more sites integrate these social widgets, Facebook will increasingly own social interaction across the web.

We’ve also confirmed that Facebook met and surpassed Mark Zuckerberg’s prediction that Facebook users would hit see the ‘Like’ button 1 billion times in its first 24 hours of existence. Not a bad start. Update: A Facebook spokesman has clarified that Zuckerberg was referring to the number of impressions the Like button had, not how many times people clicked the Like button.

Aside from the Like Button, Facebook’s other social plugins include an activity feed that displays your friends’ activity, a widget with recommended articles, and the Facepile, which shows you photos of your friends who also use the site you’re browsing.

Ning’s Bubble Bursts: No More Free Networks

I’m not surprised. Here’s the TechCrunch report.

One month after long-time Ning CEO Gina Bianchini was replaced by COO Jason Rosenthal, the company is making some major changes: It has just announced that it is killing off its free product, forcing existing free networks to either make the change to premium accounts or migrate their networks elsewhere. Rosenthal has also just announced that the company has cut nearly 70 people — over 40% of its staff.