Twitter Cuts Off Automatic Tweets From LinkedIn – Social Media Network Effects Gone Wrong

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Twitter Cuts Off Tweets From LinkedIn – Social Media Network Effects Gone Wrong:

Twitter, the bourgeoning social networking website that lets users update their status with 140 characters or less, has stopped automatic tweets from the number one professional social media website LinkedIn.  Twitter and LinkedIn had a partnership for two years that allowed users to automatically update their professional networking status via tweets in real time without having to update both platforms.

LinkedIn posted the news following Twitter on their blog today 

“Consistent with Twitter’s evolving platform efforts, Tweets will no longer be displayed on LinkedIn starting later today. We know many of you value Twitter as an additional way to broadcast professional content beyond your LinkedIn connections. Moving forward, you will still be able to share your updates with your Twitter audience by posting them on LinkedIn.”

Users who synced both accounts now have to post the update individually on LinkedIn and select “share” on Twitter.

Social Media Network Effects Gone Wrong

Social media revolves around the importance of network effects.  To put it short, a network effect means when growth occurs linearly, the profitability or impact of the growth occurs exponentially.  Think of a network effect as a network externality whereas there are positive economies of scale that make one user of a product positively impact the value another user will have on the same said product.  The net value of the product therefore depends on how many people use it such as a fax machine or ethernet card.

Twitter cutting off LinkedIn diminishes the network effects that result from sharing on both platforms and because users login to LinkedIn roughly once a month, this could have a negative effect on LinkedIn more than Twitter.  We hope both sites can reach an agreement to partner once again because applications such as Tweetdeck and Hootsuite will fair better because less people directly access Twitter these days.  Regardless, social media business models depend on expanded network effects and this is a perfect example of social media network effects gone wrong.

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