Third party companies and developers will have access to Facebook's 23 million users
Tomorrow will mark a big day for social networking site
Facebook as it opens up its doors to other companies and developers. Facebook
competes with MySpace and has gained a tremendous amount of popularity over the
last year, reaching over 23 million users and adding roughly 100,000 more on a
daily basis.
With the amount of active users concentrated in one space, Facebook is quickly
becoming a hot spot for third party companies wishing to reach more people. Facebook will now allow companies to provide products and services
on special pages on the site. Within these pages, a company like Amazon.com for
example can sell directly to users. Facebook users will be able
to purchase services and products directly.
The move by Facebook will also give companies direct access to Facebook's
massive user network and information. This is not to say that companies will
have open access to user profiles, which for the most part remain private. For
Facebook, the main draw will be to connect companies to people. It would be
possible for users to join network pages setup by a third-party company.
Despite opening its doors wider, Facebook executives say that the company will
not be sharing revenue with the third party companies. Facebook remains a
privately owned operation but does have plans to do an IPO down the line.
Facebook currently generates roughly $150 million in revenue per year through
advertisements and items such as $1 gifts that are purchasable by users.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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