Facebook: stable in light of declining subscriber

Many wonder if declining activity could signal the end of Facebook.

09:26 07 May 2013

Facebook is currently suffering from the loss of many subscribers who no longer actively use their service. There are a variety of theories, but the one which seems most prevalent is that the countries with widespread technology have already signed up for Facebook, so there is literally no room for growth.

 

It seems that Facebook’s financial status may reflect that, but their quarterly statement is still expected to show a healthy increase in profits. The average amount of time people spent on Facebook declined, even accounting for the increased minutes of usage on mobile devices.

 

What could this trend mean for Facebook?

 

• Since Facebook has bridged out to other social media outlets, their financial status may remain relatively stable as long as Facebook continues that behaviour.

 

• Typical computer usage may deteriorate while mobile activity may increase.

 

• Reduced use may force further innovation from the company.

 

• This site could—though it is unlikely—end up like MySpace once it has reached its saturation point unless it can decide what its purpose truly is and enhances user experiences.

 

• More attention focused on what subscribers want so they will be able to retain the number of subscribers they have, rather than worry about reaching saturation for growth in other markets.

 

While Facebook’s financial status is by no means threatened, the company is experiencing a sustained downward trend which demands acknowledgement in some form. Initially Facebook billed itself as a way to stay connected with people around the world, but many of the recent features which have been rolled out in an effort to keep and gain customer interest, appear to negate that purpose.

 

If Facebook wants to remain successful it appears that it will need to solidify exactly what it intends to offer and then ensure that the experience meets the needs and expectations of the customers, otherwise its financial status will suffer a negative impact.