Sunday, 27 January 2008

Facebook Versus MySpace

Rupert Murdoch's News Corp made a smart purchase with MySpace, but could his investment be evaporating before his very eyes? The Alexa chart above, shows that Facebook is breathing down his neck and preparing to eat his lunch. Hollywood Economics - using Metcalfe's Law - says that the network with the most value wins, meaning the richest get richer. Or can they live together with each owning a distinct and even complementary space?

MySpace looks like it is now going to stay pretty much specialised in music and film, whilst Facebook is taking the general utility crown. But 2008 promises to be the year of the niche social networks and data portability, so watch out Facebook, it might be you who comes back from lunch hungry.