Twitter’s recent I.P.O. bonanza gave us all some striking numbers to consider. There’s the company’s valuation: an astounding twenty-four billion dollars. And its revenue: just five hundred and thirty-five million. It has more than two hundred and thirty million active users, and a hundred million of them use the service daily. They collectively send roughly half a billion tweets every day. And then there’s the starkest number of all: zero. That’s the price that Twitter charges people to use its technology. Since the company was founded, ordinary users have sent more than three hundred billion tweets. In exchange, they have paid Twitter no dollars and no cents.
Ever since Netscape made the decision to give away its browser, free has been more the rule online than the exception.
Keep reading James Surowiecki: Valuing the Free Digital Economy : The New Yorker.
