Money From Google Crimping MySpace's Style
from the caught-in-the-crossfire dept
Last summer, News Corp. seemed to vindicate its purchase of MySpace when it signed a $900 million advertising pact with Google. Now News Corp. may be wondering whether it got more than it bargained for when it signed that deal. The Wall Street Journal is reporting that finalizing the paperwork has hit a snag as News Corp. is concerned that the terms of the deal may prevent it from exploring other partnerships. In particular, the company is said to be in talks with eBay to bring "peer commerce" to its social network. It's not clear whether it makes sense to bring eBay-style auctions to the social networking site, but either way, Google isn't thrilled about letting its rival have this opportunity; its $900 million payment was in part a defensive measure to prevent other companies from getting at MySpace's base. Meanwhile, MySpace, which had hoped to play the role of kingmaker by awarding its traffic to the highest bidder, may be feeling a bit like a pawn stuck in the middle of a larger battle.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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I think this is a key point. MySpace is a small fish compared to a lot of more proven companies and business models out there. Sooner or later, advertisers are going to realize that the site is hideous to explore, completely unusable at times, and riddled with threats to the average web surfer. Like GeoCities before it, it will tumble.
Meanwhile, Google, Yahoo!, and eBay seem likely to carry on long after MySpace's demise. MySpace is just a tool in their larger battle. Is this surprising? Did anyone REALLY think a community of children with emotional problems would out-capitalize some of the better tech companies in the world?
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The model is, find the users and push content.
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Anyone who thinks myspace is just for kids
I use myspace as a way to keep in touch with people I don't talk with or see often. It's more interesting than email simply because I can pop on to my friends site and get a feel for what has been happening in their lives. The bulletins are great for making general announcements instead of emailing everyone, and there is always the pictures and music.
I have no interest in changing to some other site because of the base I've created and the site always works fine for me. I should also point out I joined netflix because of an ad on myspace showing a free trial, so advertising does work there...
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Re: Anyone who thinks myspace is just for kids
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Firewall vendors and old AOL users
What does that say about the site?
People are concerned that all there are is a bunch of pedofiles looking for children there, which is not quite true. It is just a bunch of peeps that don't know how to really use the internet since they left AOL.
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Re: Anyone who thinks myspace is just for kids
However... saying myspace is better then email is just... um... wrong. The bulletins I've all but stopped paying attention to because it's mostly usless random crap.
Those that think myspace is going away can just think about how long AOL has hung around.
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MySpace Ads
Seems to me myspace could make a lot more money showing even slightly targeted ads, instead of showing the exact same thing to (I assume) everyone.
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kill the deal with ebay.
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yes
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yes
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