[Excerpt From My TechCrunch post] Why Twitter Should Adopt a Freemium API Model Immediately

TechCrunch kindly ran my most recent article today — the full version is available here.

Here is an excerpt:

I’ve been puzzling over Twitter’s recent tactical moves around their API, Ubermedia and Tweetdeck, for a few months now, and it just doesn’t add up. In fact I think Twitter’s current strategy may take them in a direction where they end up missing out on their biggest potential win.

If Twitter continues to go down the media company path, without incorporating their API into the plan, that could not only force a large part of their ecosystem to go elsewhere, but it could deprive them of a much larger potential infrastructure revenue opportunity, and could even end up costing them the company.

After all, Silicon Valley is littered with the  burned out wreckage of once-great media companies that failed create and keep third-party app ecosystems: AOL, Friendster, MySpace, Yahoo – to name a few. It’s very hard to maintain leadership as an online media company without an ecosystem of outside apps increasing reach, innovation, and stickiness.

In light of this, I’ve been exploring an alternate path for Twitter that leverages their API in a much bigger way, and this path appears to be a better strategy. According to my own experimental revenue  projections for Twitter, this alternative path is not only a good tactical move, but it’s a good business move because it increases Twitter’s reach, number of active users, and revenues massively.

….. Read the rest here.

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2 Responses to [Excerpt From My TechCrunch post] Why Twitter Should Adopt a Freemium API Model Immediately

  1. Saw you link to this on tech crunch. Very interesting and well thought out. Maybe you should work for Twitter 😉

  2. Eric Kramer says:

    Hey Nova, I love your take on this and couldn’t agree with you more. The freemium API is certainly a solid strategic play given their current state. With plenty of existing threats and stealth players yet to emerge, they need to spend their resources enabling innovation instead of getting sidetracked by bidding wars that can be easily avoided…

    The lack of cohesiveness amongst Twitter’s management team may be to blame for this delayed decision…

    Also, looking forward to trying out Bottlenose Beta when I get the opportunity…



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