The pressure is on for Murdoch to turn MySpace into a cash machine
source: http://www.businessweek.com/magazine/content/07_45/b4057047.htm?chan=top+news_top+news+index...
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In Search of MyProfits
The pressure is on for Murdoch to turn MySpace into a cash machine
Give Rupert Murdoch his due. When the News Corp. (NWS) chairman approved a $580 million deal to acquire MySpace in the summer of 2005, he was way ahead of the pack. Today, hundreds of millions of people around the globe have embraced these digital water coolers, using them as a means of self-expression or as a way to keep in touch with friends. But now the pressure is building for MySpace to prove it can be the cash cow that Murdoch and others are betting on. MySpace, still by far the largest social network, has lost some of its mojo lately as competing networks spring up like dandelions after a rain shower, crimping its growth.
Most important, social networks have yet to figure out a business model. Advertisers, for instance, aren't sure that social networks can become a great platform for their pitches. "Social-network advertising is still a work in progress," says Debra Aho Williamson, a senior analyst with research firm eMarketer.
The pressure is on for Murdoch to turn MySpace into a cash machine
Give Rupert Murdoch his due. When the News Corp. (NWS) chairman approved a $580 million deal to acquire MySpace in the summer of 2005, he was way ahead of the pack. Today, hundreds of millions of people around the globe have embraced these digital water coolers, using them as a means of self-expression or as a way to keep in touch with friends. But now the pressure is building for MySpace to prove it can be the cash cow that Murdoch and others are betting on. MySpace, still by far the largest social network, has lost some of its mojo lately as competing networks spring up like dandelions after a rain shower, crimping its growth.
Most important, social networks have yet to figure out a business model. Advertisers, for instance, aren't sure that social networks can become a great platform for their pitches. "Social-network advertising is still a work in progress," says Debra Aho Williamson, a senior analyst with research firm eMarketer.
