Have you ever wondered why you find it so hard to access Twitter Inc (NYSE:TWTR) or Facebook Inc (NASDAQ:FB) while participating in a live event such as a concert or a game? John Jurgensen demystified the phenomenon in a report for WSJ Live.
Essentially, the reason why Twitter Inc (NYSE:TWTR), Facebook Inc (NASDAQ:FB) and any other social media site – as well as texting or calling – are so hard to access during events is because of the sheer number of people present during these events.
“It’s a widespread and unfortunately very familiar problem in places that rely on the existing cellular phone networks that are in place. These networks are built for area coverage [or] geographic coverage, not for high-volume demands of 10,000 to 20,000 people all together in one place trying to send text messages and Instagram uploads, etc. These existing networks quickly become overwhelmed,” Jurgensen said.
Twitter Inc (NYSE:TWTR) and Facebook Inc (NASDAQ:FB) may have made changes to their systems that make them very efficient in handling data but the pipes that deliver the data to these companies are what become clogged during events when many people are trying to send data all at once.
It especially frustrating, Jurgensen noted, when Twitter Inc (NYSE:TWTR), Facebook Inc (NASDAQ:FB) and other services cannot be accessed because people have become so accustomed to their devices working that it becomes unnerving when they don’t.
Couple that with the expectation people have that they can share their experience especially during events and you have a very exasperating situation. At a later point in the discussion, the Wall Street Journal reporter also pointed out that the communications troubles during events also pose safety issues for like when family members panic when they are separated from each other.
However, it’s not only the people watching the events that are frustrated and negatively affected, Jurgensen said. For example, bands need to market their shows, he said, and the inability of people to share their experience takes away from efforts of the band to market their next shows.
Nonetheless, Jurgensen noted that maybe this problem, though costly to solve, presents a field that businesses can thrive in.
Steve Cohen’s Point72 Asset Management reported by the end of the third quarter that it owned about 2.37 million Twitter Inc (NYSE:TWTR) shares. By the end of the same period, Stephen Mandel’s Lone Pine Capital reported owning about 8.64 million Facebook Inc (NASDAQ:FB) shares.