Reduce the cost basis, which he said “makes no sense” and limits the company’s ability to innovate. Palihapitiya said Twitter spends about one-third as much money as Facebook does on operating the service, even though it has about one-sixth as many users (about 300 million per month to Facebook’s approximately 1.7 billion), and limits the length of posts to 140 characters. When Levie suggested it was crazy that Twitter hadn’t been able to address its problems with trolling and abuse of users, Palihapitiya said, “The product is technically broken.”
I have a twitter account, don’t tweet at all and seldom login. Created it because everybody say is cool. Not sure why need Twitter. Don’t understand why twitter is not part of a mail apps. Some1 should come up with a new comm apps that marry the best of email, real-time messaging, news receiver and e-commerce. This world is so complicated. So many apps, so many type of vehicles, so many… simplify please.
Twitter just shut down Vine, that silly 6 second video that loops. Turns out it takes 120M a year to run Vine?? WTF? I don’t see that many Vine videos on Twitter and I spent hours on Twitter everyday…
That shows the magnitude of Twitter’s management problem. They are just real bad at running things.
My guess is most of that was depreciation on equipment. They probably significantly over built for it. They have $382M/yr in depreciation and it’s going up a lot each year. Two years ago it was $111M. That’s crazy since they haven’t really grown their user base. That’s the issue with building your own infrastructure vs buying via the cloud.
Snapchat is already targeting as much as $1 billion in revenue for 2017, according to leaked documents acquired by TechCrunch. It’s estimating between $250 million and $350 million this year, according to those documents.
I have to wonder how much they’ll use snapchat once they are married and have kids. By then, there’ll be a new generation of young people that’ll want their own app to use. That was the issue with myspace. It was targeted at a very specific age group. When you do that, you’re usually only popular for a short time period.
There’s a reason music artists targeted at that age sell the most their 1st album. The 2nd is usually 50% less, then the third is 50% less than that, and by then they are irrelevant. The new group that is that age wants their own musicians to like.
New musicians are wiser. Dr Dre, Jay Z, Sean Combs, and Master P go into business. Despite being longer in music, net worth of Lionel Richie is not even 50% of Dr Dre.
