What have you always wondered about the economy? Tell Us

Today MySpace, tomorrow Facebook?

Amy Scott Jun 25, 2007
HTML EMBED:
COPY

Today MySpace, tomorrow Facebook?

Amy Scott Jun 25, 2007
HTML EMBED:
COPY

TEXT OF STORY

Tess Vigeland: The battle of the social networking sites is heating up. Rupert Murdoch recently complained to the Wall Street Journal — which, by the way, he’s trying to buy — that Internet users are flocking not to News Corp’s MySpace but to rival Facebook. So is Facebook the next big buyout target? Here’s Marketplace’s Amy Scott:


Amy Scott: Facebook says it’s snapped up three million new users since it launched new features last month.

It started as a virtual place for college students to flirt. Now it offers music sharing, horoscopes even the numbers game Sodoku.

Analyst Jennifer Simpson with the Yankee Group says MySpace is still on top. In April it claimed almost 80 percent of social networking traffic. But Simpson says as Facebook adds more applications, users are connecting with the site in a new way.

Jennifer Simpson: The users come back not necessarily to see what their friends are doing, which is why you would previously go to Facebook. Now people are going back just for the sake of seeing what’s happening with their application.

Simpson says the buzz may attract buyers — Facebook rejected a billion-dollar offer from Yahoo last year — but she says the company isn’t all that profitable. It’s been slower to embrace advertising than MySpace. And she questions whether Facebook can turn buzz into profit.

In New York, I’m Amy Scott for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.