Antisocial Media: The Rise and Fall of Friendster

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When software engineer Jonathan Abrams arrived in Silicon Valley in 1996, the internet was known for three things: vast amounts of information, pornography, and anonymity. If users weren't investigating the first two, they were exploiting the third to argue about movies or politics, their unfiltered opinions unencumbered by concerns over embarrassment. People were known only by their screen handles.

Abrams, who came to California to program for the web browser Netscape, had an idea. What if people could use their real names, faces, and locations online? Instead of having an avatar, they'd simply upload their existing personality in the form of photos, profiles, and interests. They could socialize with others in a transparent fashion, mingling within their existing circles to find new friends or even dates. Strangers would be introduced through a mutual contact. If executed properly, the network would have real-world implications on relationships, something the internet rarely facilitated at that time.

Abrams called his concept Friendster. Launched in March 2003, it quickly grew to host millions of users. Google began talks of a lucrative buyout. Abrams showed up on Jimmy Kimmel Live, anticipating the dot-com-engineer-as-rock-star template. His investors believed Friendster could generate billions.

Instead, Friendster's momentum stalled. Myspace became the dominant social platform, with Facebook quickly gaining ground. Abrams, who once appeared poised to collect a fortune from his creation, watched as copycat sites poached his user base and his influence waned. What should've been a case study of internet success became one of the highest profile casualties of the web's unrestricted growth. It became too big not to fail.

 

Many businesses rely on a creation myth, the idea that a single inciting incident provides the spark of inspiration that turns a company from a small concern into a revenue-generating powerhouse. For publicity purposes, these stories are just that—fictions devised to excite the press and charm consumers. Pierre Omidyar, who programmed AuctionWeb and later renamed it eBay, was said to have conceived of the project to help his wife, Pamela, find Pez dispensers for her collection. In fact, there were no Pez dispensers. It was a fable concocted by an eBay marketing employee who wanted to romanticize the site's origins.

In early press coverage of Friendster, there was little mention of Abrams looking to monetize the burgeoning opportunities available online. Instead, he was portrayed as a single man with a recently broken heart who wanted to make dating easier. Abrams later said there was no truth to this origin story, though he did derive inspiration from Match.com, a successful dating site launched in 1995. Abrams's idea was to develop something like Match.com, only with the ability to meet people through friends. Instead of messaging someone out of the blue, you could connect via a social referral.

Human-shaped icons represent the concept of social networking
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Following stints at Netscape and an aggregation site called HotLinks, Abrams wrote and developed Friendster for a spring 2003 launch. He sent invites to 20 friends and family members in the hopes interest would multiply. It did, and quickly. By June, Friendster had 835,000 users. By fall, there were 3 million. Facebook's launch in February 2004 was months away, and so low-key that Abrams met with Mark Zuckerberg to see if he'd consider selling. If an internet user wanted to socialize in a transparent manner, Friendster was the go-to destination.

When users signed up for the site, they were only allowed to message people who were within six degrees of separation or less. To help endorse unfamiliar faces, Friendster also permitted users to leave "testimonials" on profiles that could extol a person's virtues and possibly persuade a connection to meet up in the real world.

Naturally, not all mutual connections were necessarily good friends: They might have been acquaintances at best, and the resulting casual atmosphere was more of a precursor to Tinder than Facebook. One user told New York Magazine that Friendster was less a singles mixer and more "six degrees of how I got Chlamydia."

Still, it worked. The site's immediate success did not go unnoticed by venture capitalists, who had been circling popular platforms—America Online, Yahoo!, and, later, YouTube—and injecting start-ups with millions in operating funds. At the time, the promise of savvy business minds flipping URLs for hundreds of millions or even billions was a tangible concept, and one that Abrams kept in mind as he fielded an offer from Google in 2003 to buy Friendster for $30 million. It would be a windfall.

Abrams declined.

 

Investors—including future PayPal co-founder Peter Thiel and Google investor K. Ram Shriram—advised Abrams that there was too much money to leave on the table in return for short-term gain. Abrams opted to accept $13 million toward building out the site. He sat on the board of directors and watched as backers began to strategize the best path forward.

Quickly, Abrams noticed a paradigm shift taking place. As a programmer, Abrams solved problems, and Friendster was facing a big one. Buoyed by press attention (including the Kimmel appearance where Abrams handed out condoms to audience members, presumably in anticipation of all the relationships Friendster could help facilitate), the site was slowing down, unable to absorb all of the incoming traffic. Servers struggled to generate customized networks for each user, all of which were dependent on who they were already connected to. A page sometimes took 40 seconds to load.

The investors considered lag time a mundane concern. Adding new features was even less attractive, as that might slow the pages down further. They wanted to focus on partnerships and on positioning Friendster as a behemoth that could attract a nine- or 10-figure purchase price. This is what venture capitalists did, scooping up 10 or 20 opportunities and hoping a handful might explode into something enormous.

But for business owners and entrepreneurs like Abrams, they didn’t have a portfolio to deal with. They were concerned only with their creation. Its failure was all-encompassing; there weren't 19 other venues to turn to if things didn't work out.

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Abrams saw the need for a site reconfiguration. The board was indifferent. Eventually he was removed and assigned a role as chairman, an empty title that was taken away from him in 2005. As the board squabbled over macro issues, Abrams watched as micro issues—specifically, the site itself—deteriorated. Frustrated with wait times, users began migrating to Myspace, which offered more customizable features and let voyeurs browse profiles without "friending" others. Myspace attracted 22.1 million unique users monthly in 2005. Friendster was getting just 1.1 million.

 

By 2006, Friendster was mired in software kinks and something less tangible: a loss of cachet among users who were gravitating toward other social platforms. Though Abrams was out, investors continued to pour money into Friendster in the hopes that they could recoup costs. In 2009, they sold to MOL Global for $40 million, which would later convert the site into a social gaming destination. But it was too late. Though the site still had an immense number of users—115 million, with 75 million coming from Asia—they were passive, barely interacting with other users. By 2011, user data—photos, profiles, messages—was being purged.

In ignoring the quality of the end-user experience, the decision-makers at Friendster had effectively buried the promise of Abrams's concept. They sold off his patents to Facebook in 2010 for $40 million. Coupled with the MOL sale, it may have been a tidy sum, but one that paled in comparison to Friendster's potential. A 2006 article in The New York Times reported with some degree of morbid fascination that if Abrams had accepted the Google offer of $30 million in 2003 in the form of stock, it would've quickly been worth $1 billion.

In the years since, Abrams has tinkered with other sites—including an evite platform called Socialzr and a news monitoring app called Nuzzel, which is still in operation—and tends to Founders Den, a club and work space in San Francisco. He's normally reticent to discuss Friendster, believing there's little point in dwelling on a missed opportunity.

The site did, ultimately, became a case study for Harvard Business School—though perhaps not in the way investors had intended. Friendster was taught as a cautionary tale, an example that not every good idea will find its way to success.

Traumatic Episodes: A History of the ABC Afterschool Special

BCI / Sunset Home Visual Entertainment via Amazon
BCI / Sunset Home Visual Entertainment via Amazon

My Dad Lives in a Downtown Hotel. The Toothpaste Millionaire. Me and Dad’s New Wife. She Drinks a Little. Please Don’t Hit Me, Mom. High School Narc. Don’t Touch. From 1972 to 1996, no topic was too taboo for the ABC Afterschool Special, an anthology series that aired every other Wednesday at 4 p.m. Each of the standalone, hour-long installments highlighted issues facing teens and young adults, from underage drinking to the stress of living in a foster home. For the millions of viewers tuning in, it might have been their first exposure to a difficult topic—or the first indication that they weren’t alone in their struggle.

The Afterschool Special originated in the early 1970s, when programming executives at ABC had an epiphany: While there was a lot of content for families and adults during primetime, soap operas for adults in the daytime, and cartoons for children on Saturday mornings, there was relatively little content directed specifically at teenagers and pre-teens. The network saw an opportunity to fill that gap by airing topical specials midweek, when parents watching General Hospital might leave the television on and stick around to watch some TV with their adolescent children.

Initially, the network solicited a mix of fanciful stories and serious, issue-based melodramas. In the animated Incredible, Indelible, Magical Physical Mystery Trip, two kids were shrunk down to the size of a cell to travel through their uncle’s body. In Follow the Northern Star, a boy ushers a friend through the Underground Railroad to escape slavery.

 

Not long after the series debuted in the fall of 1972, ABC executives—including Brandon Stoddard, who was initially in charge of the show and was later responsible for getting the landmark 1977 miniseries Roots and David Lynch's quirky Twin Peaks onto the air—realized that the more puerile stories may have been working against them.

According to Martin Tahse, a producer on dozens of these specials, it was rare for older teens to watch programming intended for younger children. Pre-teens, on the other hand, would watch content meant for an older audience. By season three, the specials were largely made up of topical content. In The Skating Rink, a teen skater overcomes shyness borne out of stuttering. In The Bridge of Adam Rush, a teen copes with a cross-country move after his mother remarries.

The ABC Afterschool Special was an immediate hit, drawing an average of 9.4 million viewers between 1972 and 1974. Many episodes were based on young adult novels, like Rookie of the Year, which stars Jodie Foster as a girl struggling to find acceptance on a boys’ Little League team, or Sara’s Summer of the Swans, about a young woman searching for her missing, mentally challenged brother.

The series also sourced material from magazine articles, short stories, and other venues. For 1983’s The Wave, which originally aired on ABC in primetime in 1981, the story of a high school teacher who describes fascism and Hitler’s rise to power by successfully convincing his students to subscribe to a dictatorial rule, was based on the real experiences of Palo Alto teacher Ron Jones.

The effect of the topical episodes could be potent. For a 1985 special titled One Too Many, which starred Val Kilmer as an underage drinker and Michelle Pfeiffer as his girlfriend, one viewer wrote in to the Los Angeles Times to explain how the show had impacted her:

After watching the ABC Afterschool Special titled One Too Many, a story of drinking and driving, I realized I have taken too many chances with my life. I always think I can handle myself and my car after I’ve had something to drink. Nothing has happened to me … yet. I’d like to thank ABC for showing a program that could possibly save the lives of my friends and me. I’ve realized that drinking and driving is not worth the price of life.

 

As Tahse explained to interviewer Kier-La Janisse, the specials resonated with kids because they rarely indulged in what could be considered a fairy tale ending. “It had to be real,” he said. “If kids watched any of my three specials dealing with alcoholic parents, they were never given a fairy tale ending. I saw to that, because I came from an alcoholic father and knew all the tricks and I wanted the kids who watched—many dealing with the same problem or having friends who had alcoholic parents—to know how it really is.”

The shows also picked up their share of awards. One installment, the self-explanatory Andrea’s Story: A Hitchhiking Tragedy, won five Daytime Emmys in 1984, a third of all the Daytime Emmys ABC won that year. A Special Gift, a 1979 show about a basketball player who takes up ballet, won a Peabody Award.

By the mid-1980s, the specials attempted to strike more of a balance between morality plays and lighthearted fare. The 1984-1985 season consisted of seven episodes, including three comedies and one musical. In The Almost Royal Family, Sarah Jessica Parker stars as a teen whose family buys a home outside the jurisdiction of Canada and the U.S. In Mom’s on Strike, an overworked mother decides to suspend her duties until her family can appreciate her contributions.

Gradually, the specials began leaning back toward hot-button topics. Oprah Winfrey’s Harpo Productions took over producing the series in 1991. That season, Winfrey introduced the episodes, including two panel discussions about relationships and race relations. Though the series did revert back to fictional narratives, it gradually lost its footing in the wake of shows that had a more adolescent bent. A “Very Special Episode” of Beverly Hills, 90210 or Family Matters was essentially a stealth afterschool special. The series was canceled in 1996.

That the show endured for nearly a quarter of a century is a testament to the craftsmanship of producers like Tahse and the support of ABC, who rarely shied away from difficult topics. Still, Tahse—who died in 2014—believed that the series' broad appeal went beyond that.

“The only rule of storytelling that ABC required we follow was … the kid always had to figure out what to do and do it,” he said. “No finger-waving by parents, no lectures by parents. It was a kid who was in a situation and found, through his or her own efforts, a solution.”

Batmania: When Batman Ruled the Summer of 1989

JD Hancock, Flickr // CC BY 2.0
JD Hancock, Flickr // CC BY 2.0

“Flop” is how marketing research group Marketing Evaluation Inc. assessed the box office potential of the 1989 Warner Bros. film Batman. The big-budget production, directed by Tim Burton and co-starring Michael Keaton as Batman and Jack Nicholson as the Joker, was expected to be one of the rare times a major Hollywood studio took a comic book adaptation seriously. But according to the marketing data, the character of Batman was not as popular as the Incredible Hulk, who was then appearing in a slate of made-for-television movies. And he was only a quarter as appealing as the California Raisins, the claymation stars of advertising.

That prediction was made in 1988. The film was released on June 23, 1989, and went on to gross $253.4 million, making it the fifth most successful motion picture up to that point.

While Marketing Evaluation may have miscalculated the movie’s potential, they did hedge their bet. By the time profits from the movie’s merchandising—hats, shirts, posters, toys, bed sheets, etc.—were tallied, the company said, Warner Bros. could be looking at a sizable haul.

When the cash registers stopped ringing, the studio had sold $500 million in tie-in products, which was double the gross of the film itself.

In 1989, people didn’t merely want to see Batman—they wanted to wear the shirts, eat the cereal, and contemplate, if only for a moment, putting down $499.95 for a black denim jacket studded with rhinestones.

Batmania was in full swing. Which made it even more unusual when the studio later claimed the film had failed to turn a profit.

 

The merchandising blitz of Star Wars in 1977 gave studios hope that ambitious science-fiction and adventure movies would forever be intertwined with elaborate licensing strategies. George Lucas's space opera had driven audiences into a frenzy, leading retailers to stock up on everything from R2-D2 coffee mugs to plastic lightsabers. It was expected that other “toyetic” properties would follow suit.

They didn’t. Aside from 1982’s E.T., there was no direct correlation between a film’s success and demand for ancillary product. In 1984 alone, Gremlins, Ghostbusters, and Indiana Jones and the Temple of Doom were smash hits. None of them motivated people to flock to stores and buy Gizmo plush animals or toy proton packs. (Ghostbusters toys eventually caught on, but only after an animated series helped nudge kids in their direction.)

Warner Bros. saw Batman differently. When the script was being developed, producers Jon Peters and Peter Guber were urging writers to make sure scenes were aligned with planned merchandising. They scribbled notes insisting that no onscreen harm come to the Batmobile: It should remain pristine so that kids would want to grab the toy version. As Batman, millionaire Bruce Wayne had a collection of vehicles and gadgets at his disposal—all props that could be replicated in plastic. Batman's comic book origins gave him a unique iconography that lent itself to flashy graphic apparel.

In March 1989, just three months before the film's release, Warner Bros. announced that it was merging with Time Inc. to create the mega-conglomerate Time-Warner, which would allow the film studio to capitalize on a deep bench of talent to help drive the “event” feel of the film.

Prince was signed to Warner's record label and agreed to compose an album of concept music that was tied to the characters; “Batdance" was among the songs and became a #1 hit. Their licensing arm, Licensing Corporation of America, contracted with 300 licensees to create more than 100 products, some of which were featured in an expansive brochure that resembled a bat-eared Neiman Marcus catalog. The sheer glut of product became a story, as evidenced by this Entertainment Tonight segment on the film's licensing push:

In addition to the rhinestone jacket, fans could opt for the Batman watch ($34.95), a baseball cap ($7.95), bicycle shorts ($26.95), a matching top ($24.95), a model Batwing ($29.95), action figures ($5.95), and a satin jacket modeled by Batman co-creator Bob Kane ($49.95).

The Batman logo became a way of communicating anticipation for the film. The virtually textless teaser poster, which had only the June 23 opening date printed on it, was snapped up and taped to walls. (Roughly 1200 of the posters sized for bus stops and subways were stolen, a crude but effective form of market research.) In barber shops, people began asking to have the logo sheared into the sides of their heads. The Batman symbol was omnipresent. If you had forgotten about the movie for even five minutes, someone would eventually walk by sporting a pair of Batman earrings to remind you.

At Golden Apple Comics in Los Angeles, 7000 packs of Batman trading cards flew out the door. Management hired additional staff and a security guard to handle the crowds. The store carried 36 different kinds of Batman T-shirts. Observers compared the hysteria to the hula hoop craze of the 1950s.

One retailer made a more contemporary comparison. “There’s no question Batman is the hottest thing this year,” Marie Strong, manager of It’s a Small World at a mall in La Crosse, Wisconsin, told the La Crosse Tribune. “[It’s] the hottest [thing] since Spuds McKenzie toward the end of last year.”

 

By the time Batman was in theaters and breaking records—it became the first film to make $100 million in just 10 days, alerting studios to the idea of short-term profits—the merchandising had become an avalanche. Stores that didn’t normally carry licensed goods, like Macy’s, set up displays.

Not everyone opted for officially-licensed apparel: U.S. marshals conducted raids across the country, seizing more than 40,000 counterfeit Batman shirts and other bogus items.

Collectively, Warner raked in $500 million from legitimate products. In 1991, the Los Angeles Times reported that the studio claimed only $2.9 million in profit had been realized from merchandising and that the movie itself was in a $35.8 million financial hole owing to excessive promotional and production costs. It was a tale typical of creative studio accounting, long a method for avoiding payouts to net profit participants. (Nicholson, whose contract stipulated a cut of all profits, earned $50 million.)

Whatever financial sleight-of-hand was implemented, Warner clearly counted on Batman to be a money-printing operation. Merchandising plans for the sequel, 1992’s Batman Returns, were even more strategic, including a tie-in agreement with McDonald’s for Happy Meals. In a meta moment, one deleted script passage even had Batman’s enemies attacking a toy store in Gotham full of Batman merchandise. The set was built but the scene never made it onscreen.

The studio was willing to give Burton more control over the film, which was decidedly darker and more sexualized than the original. Batman Returns was hardly a failure, but merchandising was no longer as hot as it was in the summer of 1989. Instead of selling out of shirts, stores ended up marking down excess inventory. McDonald’s, unhappy with the content of the film, enacted a policy of screening movies they planned to partner with before making any agreements. By the time Warner released 1995’s Batman Forever, the franchise was essentially a feature-length toy commercial.

It paid off. Licensing for the film topped $1 billion. Today, given the choice between a film with Oscar-level prestige or one with the potential to have its logo emblazoned on a rhinestone jacket that people would actually want to buy, studios would probably choose the latter. In that sense, the Batmania of 1989 endures.

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