Is MySpace revenue a rounding error?
Seamus McCauley looks at FIM's 2007 revenue projections and is not too impressed:
On the one hand, $500 million revenues in 2007 represents year-on-year growth of 43%. ... On the other hand, this superficially impressive growth at the world's fourth-largest English-speaking website continues to look like a rounding error when compared to the other four of the top five.Eighteen months? I think that's a bit too soon to tell just how profitable these networks will become. Their spectacular rise will give way to profits, but the size and types are still in the works. See this post on "Social integration" for more.
• Google: $10.5 billion
• eBay: $7.7 billion
• Yahoo!: $6 billion and
• FIM (including MySpace but also IGN and others): $0.5 billion
Even on Fox's own presumably upbeat forecasts, there is no indication that the world's biggest social networking phenomenon will be worth even a twentieth as much as the world's biggest search destination in eighteen months.
Technorati Tags: social.networks, business.models, myspace
Friday, July 14, 2006