Facebook Adds “Good Enough” File Sharing To All Groups. Dropbox Should Worry About Growth

Josh Constine

Josh Constine is a technology journalist who specializes in deep analysis of social products. He is currently a writer for TechCrunch. Previously, Constine was the Lead Writer of Inside Facebook, where he covered Facebook product changes, privacy, the Ads API, Page management, ecommerce, virtual currency, and music technology. Prior to writing for Inside Facebook, Constine graduated from Stanford University... → Learn More

Thursday, May 10th, 2012
Facebook File Sharing

Today Facebook begins rolling out file sharing to all Groups, and while it’s got many restrictions, it could be good enough to limit the long-term growth potential of cloud storage / file sharing services like Dropbox, iCloud, and Google Drive. Music and any copyright files aren’t allowed and file size is capped at 25mb, as Mashable first reported. But this is just the first version, and you can be sure Facebook will keep hacking away at it.

Last month, the social network started letting users share files within Groups for Schools, but now we confirmed with Facebook that within a few days all Facebook users should have the option to upload and share files from the Groups post composer.

Facebook users often talk about downloadable files, but now they’ll be able to share those Word docs, images, e-books, PDFs rather than having to upload them elsewhere. The addition of file sharing has been a long time coming, as Facebook CEO Mark Zuckerberg had previously worked on a peer-to-peer service called WireHog, which was shut down due to concerns about copyright infringement. It also comes after Facebook’s acquisition of New York City-based file sharing Drop.io in 2010, which brought Sam Lessin on board.

File sharing could help Facebook fight its public image as a distraction from getting real work done. If you already have a Facebook Group to organize discussion about a class, work project, or vacation with friends, file sharing will fit right in.

You’re not going to be able to share huge home movies or zip files of photos, and sadly amateur musicians won’t be able to share their own creations with friends. But Facebook file sharing could be good enough for a lot of people, especially if it ups the file size limit, creates perma-URLs for files, and creates a tab in groups specifically showing shared files. Most important it would need extend file sharing to the general news feed to really become competitive. If it makes these improvements though, it could pull market share from other file sharing system by focusing on convenience.

There’s still plenty of use cases for the big cloud storage / file sharing services…such as sharing copyrighted files. Plus people might feel like their files will be more private on a dedicated service, even though Facebook Groups are quite secure. Products specifically for file sharing might always rule for business, but free personal usage that Facebook could chip away at has been a huge lead generator for enterprise sales. That’s why Facebook moving into the space could limit their long-term growth potential — something investors who sunk $257 million into Dropbox don’t want to see.

Let me be clear: this won’t kill Dropbox or reverse its stellar growth. We’re fans of the service and it won the TechCrunch Crunchie for overall startup of the year. But Facebook could make it hard for it become so popular that it could deliver to investors a serious multiple on the huge amount of funding its received.

The “good enough” approach is becoming a Facebook staple. It’s asymetrical, interest graph follow feature Subscribe was late to the game by years, but because it lives in the news feed where 900 million people already spend their time, it could stunt Twitter’s growth. The same thing could happen here. Facebook’s popularity and how deeply it’s ingrained our lives give it a big advantage. Power users may always crave specialized products, but for average joe, the option to send a file from the Facebook account they already have might be enough to stop them signing up somewhere else.

[Additional reporting by Ryan Lawler. Image Credit: How Stuff Works]


Company: Facebook
Website: facebook.com
Launch Date: February 1, 2004
IPO: NASDAQ:FB

Facebook is the world’s largest social network, with over 1 billion monthly active users. Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks. The original...

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Company: Dropbox
Website: dropbox.com
Launch Date: June 1, 2007
Funding: $257M

Dropbox was founded in 2007 by Drew Houston and Arash Ferdowsi. Frustrated by working from multiple computers, Drew was inspired to create a service that would let people bring all their files anywhere, with no need to email around attachments. Drew created a demo of Dropbox and showed it to fellow MIT student Arash Ferdowsi, who dropped out with only one semester left to help make Dropbox a reality. Guiding their decisions was a relentless focus on crafting a...

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