Wed, June 18, 2008
So, MySpace just unveiled its redesigned home page. And, at first glance, it looks like Batman now owns Myspace. They made the home page one big eyesore of an advertisement. How’s that for community!?!? It’s clear that they are now in “make freakin’ money” mode.
This is the same old story that continues to repeat itself online. A company pops up with a free, functionally kick-ass website. They get tons of visitors. They then sell that company and the new owners want to make a profit. They then take that kick-ass website and start shoving some form of advertising in the face of consumers (or charge them for the same service they were getting for free) and it then scares them away. Will this happen to Myspace? We will have to wait and see but according to a recent New York Times story, revenue is proving hard to come by. According to the story, they are going to miss their target revenue for the year by about 25%.
I encourage you to visit the link to the story listed below. It’s an interesting read that talks about the economics of the social networking space which I highly suggest you all read. This space will continue to change rapidly and I think the way those changes occur will be directly impacted by the revenue they are able to generate. As a social networking user – it depressing to know that the experience will only continue to become more advertiser-driven. As an advertiser – I guess there could be an upside. We’ll see.
Read on.
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