MySpace will not make the grade
E-commerce
08 May 2008
Social networking site, MySpace, will fail to reach its revenue targets for this year, its owner News Corporation has warned.
The media giant revealed Fox Interactive Media, of which MySpace is a part, will return "about ten per cent" less than was hoped, it was reported.
"Despite the obstacles we're facing, what we're accomplishing is extraordinary," said News Corp's chief operating officer, Peter Chemin.
The disappointing figures raise questions on how social spaces are valued and the high price tag they have attracted.
"It's still difficult to quantify the economic value of a friend in the social networking space," Mr Chemin commented.
Facebook is valued at $15 billion (£7.6 billion), however this is based on the value it may have for advertisers who have yet to secure a definite business model to monetise the space.
Several online services are applying the ad-supported model, which gives users free content in return for them watching marketing messages.
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