Took a snipet from: http://www.applexnet.com/trent/blog/...article&sid=50
In just a two years MySpace.com has trounced its main competitor, Friendster, to become one of the largest websites on the internet. Now owned by News Corp. but still run by CEO DeWolfe, co-founder and president Anderson, and many former employees from Xdrive, Inc. and ReponseBase, LLC, the site boasts over 40 million members. What makes MySpace so intriguing to its users is that it provides them with all these services for free as well as a profile that they can fully customize and use to display personal information about themselves that friends can comment on and that also links to their friendís profiles. The site even provides these millions of users with free hosting space for images to use in their profiles. All of these features come at zero charge, a business plan that had failed for DeWolfe in the past at Xdrive. Yet MySpace thrives. The site is extremely popular among todayís youth and commands a near cult-like following.
MySpace makes all of their money from advertising. Unlike some sites, MySpace has always also been a part of an advertising company so they have always designed their site with the intention of advertising. One of the key components of advertising and marketing is demographics. Something MySpace users willingly provide. This is why Intermix Media sold for so much more than their actual market value worth, News Corp. was interested in the marketing demographic database that is MySpace. Essentially, MySpace users are filling out marketing profiles that are mined by the company that are then presented as these people's personal webpages. MySpace knows that controlling content on these profiles is essential, which is why they will commonly censor anything they disagree with. Considering MySpace has a considerable amount of bloggers, this is a serious issue for free speech advocates.
Given Dewolfe's experiences at Xdrive a valuable lesson had been learned: there is no money in giving millions of people costly web hosting space for free, but there is in owning demographic info ranging from just someone's e-mail address to personal information for targeting advertising at them. Upon registering for MySpace.com, one is automatically assigned a "friend," Tom Anderson. According to several interviews easily found on Google with Mr. Anderson, he is the so-called "brains" behind MySpace, second only to DeWolfe. With ResponseBase scrapped and DeWolfe and his team needing a new way to deliver advertising and collect information from users, it is really no surprise that MySpace.com was launched the way it was. To reiterate, "DeWolfe learned while at Xdrive that people will sign up for almost anything that they find useful, and they could care less about the fine print."
By Trent Lapinski. An aspiring journalist and CEO of AppleXnet.com, an alternative Mac tech news, analysis, reviews, and opinion website. Lapinski is currently a college student and resides in Southern California. You can contact Lapinski via e-mail at [email protected]