Twitter is building a media business using other people’s content

From Gigaom:

As Twitter continues to build out new features such as “expanded tweets” and curation-based services like its NASCAR editorial offering, it has become pretty obvious where the company is headed: it has given up on being a utility built on open APIs and is becoming a media company, powered by a rapidly-growing advertising platform. Twitter also has one big advantage that other media companies don’t: the fact that it doesn’t have to produce any of the content, but simply acts as a filter for information from other sources. Its success will be determined by how well it strikes a balance between helping other media entities and competing with them.

Twitter CEO Dick Costolo has repeatedly resisted suggestions that Twitter is a media entity, perhaps in part because the company wants to be seen as a partner for traditional media companies like newspapers and TV networks. But as its advertising business grows larger — thanks in part to reports from advertisers of “staggering” levels of engagement with ad features like promoted tweets — and it continues to tighten the rules on its API to squeeze out third-party developers, it becomes more and more clear that Twitter’s future is based on controlling access to the information flowing through the network as closely as possible.

Continue reading the rest of the story on Gigaom