Why MySpace Is the Hot Place
Monday, 13. June 2005 - 5:03 pm
BUSINESS WEEK — May 31 — Only 20 months old, MySpacehas 14 million uniques a month. Friendster started three years ago and
has 1 million uniques. "We're crushing it," says MySpace CEO Chris DeWolfe,
39. Bands can create their own home pages, with photos, tour dates, and
as many as four songs — all for free. Now, MySpace has become
something akin to the hippest bar in town. They need to boost
revenues, which come largely from ads from companies ranging from
Procter & Gamble to NBC. Complicating matters is rising competition
from Yahoo!, Microsoft, and AOL who are moving into social
networking. Yahoo (112 million) plans to launch Yahoo! 360 this
fall. MSN (88 million users) launched 'Spaces, in April, and
signed up 10 million users in a matter of weeks. Blake Irving, VP
for MSN communications says it will offer e-mail, instant messaging,
and social networking all in one place. "I think people will want one
digital profile that says: 'This is my digital self.'" These
networks are part entertainment — a substitute for TV. Myspace
is developing into a powerful way to reach 16 to 30 year olds, one of
the most sought-after and elusive demographic segments.
Friendster, with its smiley-face logo, has focused on fostering safety
and trust. MySpace has let its members do whatever they want. FULL ARTICLE @ BUSINESS WEEK
Mark Brooks:
I know, I know, yet another article on MySpace…but it's Business Week
already! Friendster still has shot at stealing back some of it's
thunder. I will interview the new Friendster CEO, to try and get
some insight on his plans, for a feature on OPW at the beginning of
July.