The Corporatization of Facebook: Media Power and Social Networks - Report Example

THE CORPORATIZATION OF FACEBOOK: MEDIA POWER AND SOCIAL NETWORKS Name Here Name of Institution City, State Date The Corporatization of Facebook: Media Power and Social Networks Business Model behind Facebook Since its inception in 2004, Facebook has grown into one of the largest social sites that not only have the highest number of users, but boost of significant revenue. The introduction of the web 2.0 laid a fundamental foundation that made it possible for start-ups like Facebook to grow and become kingpins in the cyberspace. Today, Facebook boost as a social media that allow users to connect with friends, post pictures and upload videos, chat with friends and perform other myriads of tasks such as purchasing virtual gifts. Because of Facebook’s strategy in connecting global netizens, the site receives close to 250,000 new users every day (Higham, 2009, p. 34). The site also generates massive income with Facebook’s revenue hitting a 2 billion dollar mark in 2010 alone. While there are many social sites like MySpace and Twitter, Facebook continues to hold a sizeable chunk of users of social media primarily because of its business model. Unlike other social sites, Facebook business model taps from the free labour created by Facebook users who use the site to communicate and maintain relationships. More specifically, Facebook relies on free labour of its users to accumulate capital by turning relationships, patterns and information users share into capital—a driving force of Facebook. There are more than 64 million users of Facebook, which continues to attract more users into the social network. Many people who join Facebook do so after being invited by their friends because Facebook has capitalized on technology to build a platform that suggest friends to users based on their user profiles (Hinuja & Patchin, 2008, p. 84). The fundamental organization of Facebook is the primary reasons that explain the success of this strong platform. In addition, the organization of Facebook and its reliance of users who generate contents by interacting with the website points to the pillars of its business model—user generated content. Similar to other social site, Facebook relies on its users to create value, which has made the social site become the highest valued social site. Because Facebook gains from its users, Facebook provides users with a platform where they create personal profiles and link them based on several preferences. In addition, Facebook also stores personal information about users such as their like, address numbers, relationship status and employment history. It is not difficult to conceive the information that users store in Facebook when using the social platform. On average, users spend close to 20 minutes each day working on their profiles by linking to their friends, uploading content or joining groups (Raine, 2008, p. 10). Other user tasks such as sending message, sharing website links and writing notes creates a community that make Facebook users linked and more social than other site. The huge number of users of Facebook, along with their content has created significant value to Facebook. This is because user content and patterns are a commodity that can generate income to Facebook. The surging user base along with increasing interaction among users of Facebook is thus a massive valuable asset that defines Facebook’s business model. That Facebook users present an active community remain one of the defining aspect of Facebook business model. The onset of Web 2.0 changed how social sites interact with their users. Rather than having a passive community, the Web 2.0 gives users a new role to play, one that would leverage on their synergy. Beginning in 2007, Facebook developed tools that allowed users to interact with Facebook application not to mention downloading and interacting with Facebook applications. Unlike other websites, Facebook prides in creating an interacting online media where user interaction and content is essential in developing value when users share information. Facebook founders, Mark Zuckerberg believe that Facebook has revolutionized the online media by creating a community that participates in online interactions. The revolution of Facebook is changing the position of a user from a passive user to a commodity, which Facebook use to create value. An analysis of Facebook would be incomplete without mention of Facebook’s channel for generating income. Facebook customer relationship is one of the prime reasons, which explains its success in attracting many users. To ensure that people trust Facebook, the corporation gives users the ability to control their privacy settings by limiting what other users can see about their profiles (Miller, 2011, p. 22). However, third party search engines use APIs to access the profiles of users. In addition, Facebook conduct surveillance on its users to learn of their patterns so as to deliver tailor made advertising. By learning about its users, Facebook has succeeded in changing role of its users from passive actors to commodities whose action generates surplus value to the corporation. More than before, Facebook has poised itself as a corporation that gains value from its workforce and users who are not engaged in providing free labour, which generates revenue through advertising campaigns. There is no doubt that Facebook offers it users a social networking platform, one where people engage in online communication. Facebook offers users a wealth of tasks to interact with their friends, but this value proposition comes at a cost. Facebook relies on user information to provide marketers with business intelligence, one that allows them to market their products to the right community of users (Wittkower, 2010, p.242). This is the primary technique that Facebook uses to generate income to run it operations. By using the information of its customers, Facebook has gained from marketers who pay for customized ads. This is event the case when Facebook position itself as a Corporation that gives its customers control over their privacy settings. Significance of Facebook’s Economic Structures and Power Relations With Facebook introducing a new parading in social media, there users generate value, analysis Facebook economic structure and power relations is key to understanding the commodification of users, which has made it very successful, unlike other social media. The is a lot of hype about Facebook market value estimated as 50 billion dollars in 2011, however, most people fail to realize that Facebook has brought about a reorganization of production where it has increased well by offloading cost on the consumer while extending control to users who provide free labour (Dijck, 2011, p.173). This story of Facebook would be incomplete without the role of users who are responsible for generating income for the corporation. Rather than using its staff such as marketers and developers, Facebook relies on its users to generate income. This signifies new levels where corporates like Facebook perform penetrative commodification. The technology Facebook uses gives the corporation more control over its users and valorises capital. The economic structures of Facebook underpin the corporates communication process. More than before, Facebook has shaped the cyberspace by turning free labour into a commodity. The cyberspace remained untouched until the entry of Facebook, whose business model changed how social media generate revenue (Krinsky, 2003, p. 20). The power of Facebook stems from its ability to create value from surveillance of its users. While Facebook appears to give users value, it aggregates user information and relies on free labour users provides to collect information that is sold to third party users for marketing purposes. Invariably, Facebook has succeed in commodification of free labour making it become of the most prized corporate today because of its ability to utilize its power relation and exploit free labour. Summary of Week’s Reading The reading on the political economy of privacy of Facebook highlights some of the significant issues relating to Facebook’s operations. In this article, Fuchs (2012, p.140) argues that Facebook exploits user privacy by exposing user data to third parties. In addition, He argues that privacy protects private property, but corporations undermine privacy to generate value. Fuch (2012, p. 143) believe that socialist privacy protects the public from exploitation, but economic privacy does the reverse. Economic privacy can protect corporates who undermine public privacy, but it can also protect consumers. Fuch argue that Facebook ought to strive to protect user data by practising economic privacy that protects uses from exploitation by corporates. However, Fuch argues that users become commodities because Facebook exploits their free labour to create surplus. In particular, Facebook users provide data that third party can access, but they also consumer directed advertisements. In line with socialist privacy norms, Fusch believe that several alternatives can help protect the user from commodification process. Such alternatives should provide free access where users are not exploited as in the case of Facebook. In his article, Dijck (2011, p. 164) affirms that social media has changed norms for communication and interaction in the public sphere. He argues that while social media do not create a new public sphere, they play a critical role in transforming relations. According to Dijck (2011. p.164) social media have changed how users make connections, as well as how people create idea. On Habermas ideas, Dijck (2011, p.164) contend that social media remain on the hand of corporations in western nations as communist to communist regions. He, however, sees the problem of Herbarmas ideas that fail to view social media as channel for exchange of ideas. To Djck, social media transform norms about social conduct, but this has drawn contest between corporations interested in taking control over the social media platforms. While the analysis of social media continues, Dijck argues that the process is daunting and only possible when new theories and models are used to evaluate the new space of communication—social media. Reflection on the Week’s Topic and Material The week topic and material on corporatization of Facebook have given me insight into a new perspective of Facebook. That Facebook is now a corporate; I understand why there is a lot of hype about how Facebook intends to make money and creating value for its investors. The answer lies with Facebook business model, which depend on its users to derive surplus value. I firmly believe that Facebook has succeeded in commoditizing users and using their free labour to make economic gain. Being that I am a user of Facebook, I could not agree more with the readings that I am a valuable asset of Facebook and that my actions are a prize to Facebook. Indeed, I believe Facebook’s ability to mine data from users and generate useful patterns, that suit marketers, hold the key to its success. I believe it is time to exploit new model of promoting privacy while ensuring that users are not exploited by corporations like Facebook. Further Research Possibilities There is a need to consider how social media can be used to build and maintain resistance against commodification of users. There is no doubt the social media have provided users with opportunities to share information and ideas not to mention forging new relations. However, the commodification of users by corporation like Facebook creates a negative effect on users. Being that Web 2.0 applications remain flexible and robust, research should be done on how these applications can help promote open access to social platform. This could entail the development of a new alternative to social platform where corporate capitalize on user privacy to create surplus value. While considering the shortcoming of social media, it is vital to determine how best web 2.0 applications can help users resist exploitation by corporates bent on generating profit from free labour. References Fuchs, C, (2012), The Political Economy of Privacy on Facebook, Television New Media 13, pp. 139-159 Gunter, K. S. (2011). Sams Teach Yourself Facebook in 10 Minutes. New York: SAMS Higham, W. (2009). The next big thing spotting and forecasting consumer trends for profit. London, Kogan Page Ltd. Hinduja, S., & Patchin, J. W. (2009). Bullying beyond the schoolyard: preventing and responding to cyberbullying. Thousand Oaks, Calif, Corwin Press. Raine, C. M. (2008). Uses and Gratifications of Facebook for Political Information. ProQuest. Van Dijck, Jos, (2012), Facebook as a Tool for Producing Sociality and Connectivity, Television New Media 13, pp. 160-176 Wittkower, D. E. (2010). Facebook and philosophy: what's on your mind? Chicago, Ill, Open Court. Read More

not difficult to conceive the information that users store in Facebook when using the social platform. On average, users spend close to 20 minutes each day working on their profiles by linking to their friends, uploading content or joining groups (Raine, 2008, p. 10). Other user tasks such as sending message, sharing website links and writing notes creates a community that make Facebook users linked and more social than other site. The huge number of users of Facebook, along with their content has created significant value to Facebook.

This is because user content and patterns are a commodity that can generate income to Facebook. The surging user base along with increasing interaction among users of Facebook is thus a massive valuable asset that defines Facebook’s business model. That Facebook users present an active community remain one of the defining aspect of Facebook business model. The onset of Web 2.0 changed how social sites interact with their users. Rather than having a passive community, the Web 2.0 gives users a new role to play, one that would leverage on their synergy.

Beginning in 2007, Facebook developed tools that allowed users to interact with Facebook application not to mention downloading and interacting with Facebook applications. Unlike other websites, Facebook prides in creating an interacting online media where user interaction and content is essential in developing value when users share information. Facebook founders, Mark Zuckerberg believe that Facebook has revolutionized the online media by creating a community that participates in online interactions.

The revolution of Facebook is changing the position of a user from a passive user to a commodity, which Facebook use to create value. An analysis of Facebook would be incomplete without mention of Facebook’s channel for generating income. Facebook customer relationship is one of the prime reasons, which explains its success in attracting many users. To ensure that people trust Facebook, the corporation gives users the ability to control their privacy settings by limiting what other users can see about their profiles (Miller, 2011, p. 22). However, third party search engines use APIs to access the profiles of users.

In addition, Facebook conduct surveillance on its users to learn of their patterns so as to deliver tailor made advertising. By learning about its users, Facebook has succeeded in changing role of its users from passive actors to commodities whose action generates surplus value to the corporation. More than before, Facebook has poised itself as a corporation that gains value from its workforce and users who are not engaged in providing free labour, which generates revenue through advertising campaigns.

There is no doubt that Facebook offers it users a social networking platform, one where people engage in online communication. Facebook offers users a wealth of tasks to interact with their friends, but this value proposition comes at a cost. Facebook relies on user information to provide marketers with business intelligence, one that allows them to market their products to the right community of users (Wittkower, 2010, p.242). This is the primary technique that Facebook uses to generate income to run it operations.

By using the information of its customers, Facebook has gained from marketers who pay for customized ads. This is event the case when Facebook position itself as a Corporation that gives its customers control over their privacy settings. Significance of Facebook’s Economic Structures and Power Relations With Facebook introducing a new parading in social media, there users generate value, analysis Facebook economic structure and power relations is key to understanding the commodification of users, which has made it very successful, unlike other social media.

The is a lot of hype about Facebook market value estimated as 50 billion dollars in 2011, however, most people fail to realize that Facebook has brought about a reorganization of production where it has increased well by offloading cost on the consumer while extending control to users who provide free labour (Dijck, 2011, p.173).

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