MySpace: Profitable or Perishable?

During a recent conversation with a MySpace director, I was reminded that MySpace isn’t the web — it’s a business. Fair enough. Why shouldn’t Fox get a return on its $580 million investment? Why should the company serve up its audience to YouTube, Sony and everyone else who wants a piece of the action for free?

What doesn’t make sense is Fox’s assumption that the MySpace stronghold (81 percent of the social networking market) can withstand a backlash from developers and users who prefer a more open environment — even one that hosts ads and the Flash-based widgets that MySpace says are a security threat. In the end, MySpace is just one mass migration away from becoming Tripod.

Read Eliot Van Buskirk’s Note to Everyone: MySpace Is Not the Web. Get Ready to Move On from WIRED. On topic: Will MySpace try to monetize its ecosystem? from ZDNet’s Steve O’Hear and MySpace to content providers: it’s OurSpace, we’re in charge from Ars Technica..

Previously from WNM: Social networking from niche to mainstream.


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Filed under Business 2.0, Social Media

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