Facebook and the Social Media World

FACEBOOK

Owned by:

Mark Zuckerburg and other individuals

Microsoft owns 1.3%

Digital Sky Technologies owns 10%

Owns:

Instagram

Although the Facebook ownership map may not look big, in fact it only consists of one other company, but they dominate the social media sphere. After researching big conglomerate companies such as Disney and GE, I realize it is in no way on the “big 6” level, but I think it has potential to reach that level. Facebook bought out the rising photo editing and sharing application Instagram while it was booming and most recently attempted to buy out the ever so popular Snapchat, signs that Facebook is entering into the business side of social media.

The “big 6” may be huge conglomerates that own consumer products, media outlets, theme parks, film productions, and so much more, but what they lack that Facebook has invested in is the future generation. Apps such as Facebook, Instagram, Twitter and Snapchat have a potentially huge future awaiting them. Facebook does not have a concentration of ownership on the social media world yet, but they have and are clearly trying to attempt to monopolize the revenue of social media. Theories on why they bought Instagram consist of Facebook wanting to get rid of the leading competitor and to eventually create a revenue model for Instagram.

Facebook buying Instagram and attempting to buy out Snapchat shows an attempt at horizontal integration. If FB were to end up owning Snapchat and Twitter on top Instagram, they would have ownership across the social media sphere. The challenge with getting a monopoly on social media or of integration within the social media world is that new social media apps pop up daily and whether or not they will be successful is solely up to the users. So realistically a monopoly of this world would be impossible.

Just like with other media, especially newspaper as we discussed in class, Facebook’s main revenue comes from advertisers. If FB were to dominate the social media world, companies would only want to advertise with Facebook, which would result in synergy. No other company would be able to compete in the social media world unless they had many strong investors which would be unlikely because smart investors would invest in Facebook and the companies they own because they would be the successful ones.

What’s different about social media compared to news media is that the public creates the content so the fact that profit is the main goal for investors and owners has yet to cause a problem. News media only focusing on the business side results in poor content or infotainment. News media has a presence in social media, but it is completely up to the public what they post. Therefore I don’t see harm in concentration of ownership, but I also don’t think it is as realistic in the digital age. New application will be forever popping up and who knows which one will make it big.

Advertisements

2 thoughts on “Facebook and the Social Media World”

  1. The idea that an app created by anyone, and very a small cost, could become as big as Facebook or Instagram gives me hope! Social media and the internet are standing on for the print press at the start of the spread of news, when anyone could easily and cheaply share their ideas. This should inspire us to try and keep the internet free and not turn into big conglomerations like we see taking over the rest of the media world!

  2. Great job looking ahead! I agree that it is definitely smart for Facebook to be investing in what seems to be a bright future in Social Media, while many other conglomerates are simply buying up whats old and most-likely on the outs (print media, specifically). The “Big 6” and other large corporations should be using the Facebook model of buying up the popular media of the younger generations to keep current. Apps and the people have the power!

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s