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Autarky: Why Facebook Credits are Doomed to Failure

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Warner Bros. has announced it will begin streaming films on Facebook.  In some ways, this is a good move for the studio, allowing them entrance into a market that could potentially put rivals such as Netflix and iTunes out of business.  Unfortunately, Warner has agreed to led Facebook users pay them with Facebook Credits rather than actual currency.  If they, or Facebook's Mark Zuckerberg, were paying any attention to history, they'd know why that's a bad idea.


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