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Yet Another Drama About Twitter

Twitter, in a post on its blog, has acknowledged that it’s been having problems. It attributes some (not all) of them to so-called “popular” users that it says overloaded the system when they sent updates in too quick a succession. In other words, it was a tactical acknowledgment by the company of problems that have already been widely reported.

Of course Twitter’s most popular user is Robert Scoble, and as far as numerous successive posts have argued, he is the real source of the problem (prompting some not-unexpected foot-stomping on Scoble’s part).

I wrote about Twitter’s problem in a post last weekend and how they should charge for people like Scoble, Michael Arrington and myself for using their system so aggressively. Our use of Twitter benefits our businesses. Links to Scoble’s posts can drive traffic to his site or his videos, which in turn drives attention to his work and his employer. Same holds true for Michael and for me. On a more philosophical basis, it allows us to stay in touch with our readers, who in turn keep us in business.

Nevertheless, since common sense and paid services are apparently not part of this brave new Web 2.0 world, my idea didn’t play well. What was I thinking? Instead there’s this belief that Twitter, the ultimate tool of our collective narcissism, should be so lucky to have super users, that they are what make it popular with everybody else. I don’t subscribe to that point of view, but hey that’s just me.

For Twitter, the challenge of keeping the service going while at the same time fixing it to scale up is immense. Thankfully they have the money and what looks like the will to fix the problems. Will they? We shall see!

Update: The debate about Twitter rages on. Scoble met with Twitter team and talked about the various issues in a video interview. I got an email from Even Williams who is one of the founders of Twitter and this is what he had to stay:

We like the idea of charging for commercial use. That’s something we’ve been talking about for a long time (you can probably find my quoted saying that from a year ago). We’re just not there yet.

Given all different opinions, and other issues that have emerged, I have to reiterate that by charging the super users, I am suggesting that costs will bring in a sense of responsibility to the entire ecosystem. When there is no tax involved, there is no cost to having thousands of followers, or sending hundreds of messages. When asked to pay, heavier users will use the system responsibly.

Technology-News: GigaOm

Update: AOL Buying KickApps Too?

AOL, fresh off its $850 million purchase of social network Bebo, is now eyeing KickApps, a white-label social software company, reports Kara Swisher. Her sources peg the deal price at around $90 million. The deal hasn’t been inked just yet. KickApps, based in New York, has raised $17 million from Softbank Capital, Prism VentureWorks and Spark Capital. I contacted one of their investors but he wouldn’t comment on the rumor.

Update: As an aside, KickApps CEO Alex Blum is an ex-AOLer. I checked with my sources and it seems like AOL isn’t the only candidate looking at KickApps and the $90 million number isn’t even close to what company wants. Given that they have raised $17 million, KickApps must have a valuation of $40-50 million, and their investors must be looking for at least 3x return on their money.

When I asked AOL COO Ron Grant if AOL was going to be doing any more deals soon, he declined to comment but said the company will be “aggressive.” I have heard from multiple sources that AOL is kicking the tires at many Silicon Valley startups. From the looks of it, Time Warner is ready to spend to do a complete makeover of AOL. Call it dressing up before a spinoff, regardless of what happens with Yahoo.

Technology-News: GigaOm