Saturday Jul 5 2008
All times are London time

Search Quotes in the FT.com site
FT Logo

March 19, 2008

Facebook Chat

Facebook’s users are bound to be excited by news that the social network is planning to roll out its own chat service in the coming weeks; Facebook developers, perhaps not so much.

There are dozens of developers offering chat applications designed to run on the Facebook platform. Facebook’s decision to get into the chat business for itself means those developers will now have to grapple with an 800 lb gorilla in the room, sucking up all the air

As revealed to reporters on Tuesday, Facebook’s new chat service looks to be a no-frills affair. The service doesn’t allow group chats, and users will only be allowed to chat with other Facebook friends. Still, Facebook’s decision to make its chat service a full-fledged feature of the site means that it will be in pole position to capture users from rival applications that sit on the Facebook platform.

The situation is reminiscent of that faced by developers writing applications to run on Windows in the 1990s. Back then, if a particular application market got big enough, the chances were that Microsoft would move in to try to capture it for itself. That is why Microsoft muscled its way into the highly profitable market for word processing and other office productivity software, where it was able to gain a huge advantage by tying shipments of Office to Windows.

None of the third-party chat applications on Facebook have met with huge success yet. But there are signs that chat could become an important feature on social networks as it has on the rest of the internet, where usage is widespread. AOL, for example, has said that close integration with its AIM messaging service is one of the chief rationales behind its $800m acquisition last week of Bebo, a Facebook rival.

In addition to its new chat feature, Facebook already has applications that let its users share photos, video, and other information with their online friends. The question vexing Facebook developers is, what other popular applications does Facebook plan claim for itself?

Tags: , , , , ,

2 Responses to “Facebook Chat”

Comments

  1. Isn’t this a market failure in software/applications/web markets?

    “Adding features” is often leveraging market dominance to force out competitors - does this really encourage innovation and the success of the best products?

    Posted by: Dave | March 19th, 2008 at 9:29 am | Report this comment
  2. cool dude

    Posted by: george | March 20th, 2008 at 6:20 pm | Report this comment

Post a comment

Comment Policy




As a final step before posting the comment, please type the two words you see in the image beloweight numbers in the audio clip; this test is to prevent automated robots from posting comments.


More FT Blogs and Forums

  • Clive Crook's blog The FT's chief Washington commentator blogs about intersection of politics and economics

  • Economists' Forum Leading economists and the FT's chief economics commentator, Martin Wolf, debate the big issues

  • Gideon Rachman's blog The FT's chief foreign affairs commentator on world issues and his travels

  • The Undercover Economist Tim Harford's blog on economics in everyday life

  • Willem Buiter's Maverecon The LSE professor blogs on 'economics, politics, ethics, religion, culture, free and open source software (FOSS), and whatever'

  • John Gapper's blog FT chief business commentator talks about business, finance, media and technology

  • Management Blog A forum for the latest thinking about the issues that preoccupy managers around the world'

  • FT Alphaville Instant market news and commentary for finance professionals

  • Brussels Blog By our Brussels writers

  • Westminster Blog By our UK Parliament writers

  • Dear Lucy Columnist Lucy Kellaway and readers solve your workplace woes