Most of Facebook’s valuation is driven by 0.15% of Mobile Gamers

As you read the breathless reviews of Facebook’s Q2 2014 results, remember that the entire App economy depends on a tiny group of whales who spend hundreds of dollars a month on in-App purchases. This is terrifying. Facebook’s stock price is the second derivative of in-app purchase revenue. Things are highly geared, and incredibly risky.Continue reading “Most of Facebook’s valuation is driven by 0.15% of Mobile Gamers”

Creating value through scarcity.

It’s been a crazy month for me and mine as we try to plan a wedding across the continent. Now that summer is officially over it’s time to hunker down and relieve everyone’s curiosity. and catch up. So, to make for a post-free month here are two short posts sandwiched into one. The newspaper businessContinue reading “Creating value through scarcity.”

Youtube gets down to business.

It’s incredibly difficult to create a product that both delights customers and generates revenue. As a result, the usual way to build a digital media business is to first create something that users love and then, months or years later, find a way to really monetize it. Youtube followed this model for years. It nowContinue reading “Youtube gets down to business.”

What the Underpants Gnomes can teach you about business on the web.

I’ve been thinking a lot about the kinds of businesses that will start and thrive in this economy. The bulk of web 2.0 companies were built (and bought) based on the thought that they would aggregate and re-sell people’s attention. As we moved through the business cycle, some companies developed exotic ways of targeting theirContinue reading “What the Underpants Gnomes can teach you about business on the web.”