Financial News

  • 4 February 2014, 13:04

Facebook Marks 10 Years Since Humble Beginning

Facebook celebrates its tenth birthday today, marking a major milestone for the social network which boasts more than 1.2 billion monthly users.

In its first decade Facebook has garnered users from all over the globe keen to communicate with friends, post updates and share photographs.

The social network - which was established by Mark Zuckerbergwhile at Harvard University - has grown to become a multi-billion dollar company.

Last week the company reported record revenues of $2.5bn dollars (1.5bn) from 750 million daily users.

But the birthday celebrations come amid uncertainty from analysts over the future of the social network.

Dr Markos Zachariadis, an assistant professor at the Warwick Business School, has researched the company and innovation in social networks.

He said Facebook could be in danger of being overtaken by other online networks.

"It is the largest social network in the world, but many are questioning whether it will survive another 10 years," Dr Zachariadis said.

"Another innovation and network may come along to threaten its dominant position in the market.

"But Facebook is in a good position to expand and grow further, thus creating a strong 'network effect' and adding new services to keep users engaged."

A recent Princeton University study predicted Facebook could lose up to 80% of its users by 2017.

The study found it "has already reached the peak of its popularity and has entered a decline phase".

Professor Daniel Miller, of University College London, has also argued that simpler social networks such as Twitter are likely to replace Facebook over time.

"Parents have worked out how to use the site and see it as a way for the family to remain connected. In response, the young are moving on to cooler things," he said.

"What appears to be the most seminal moment in a young person's decision to leave Facebook was surely that dreaded day your mum sends you a friend request.

"The desire for the new also drives each new generation to find their own media and this is playing out now in social media."

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