Filed under: Business, Internet, Web services, Social Software
Does MySpace make money?
If there were any doubts about social networks making money after all of their debts, development costs and acquisition prices, take a look at MySpace's recent profits.News Corp. has announced that MySpace has made a profit of $10 Million on $550 million in revenues, with almost 4.3 billion page views per day. When Rupert Murdoch bought the social network it wasn't clear to many if and when they would recoup their initial investment. This reported amount far exceeded News Corp's initial benchmarks, and with MySpace part of the Fox Interactive arm, the company said they will approach the $1 Billion mark in annual revenue on that sector alone.
The earnings results also included revenue from MySpace's deal with Google to monetize search results.
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Reader Comments (Page 1 of 1)
Eric said 5:19PM on 8-13-2007
A $10M profit on $550M of revenues is a 1.8% profit margin, which is roughly equivalent, or perhaps a little below, what you would expect at a grocery store. In other words, NewsCorp might have gotten a better ROI if they had bought SafeWay instead.
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keeves said 5:41PM on 8-13-2007
I'm confused... is this post suggesting that $10M is a lot of money? if there profit margins are that slim then social sites could soon find it difficult to make money.
Who knows, there may be a mass reluctance for advertisers to use social sites in the coming year, for fear of what their advert will be placed along-side, similar to how several large UK firms recently withdrew advertising from Facebook, after their adverts were appearing alongside BNP's pages.
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bhavin said 10:43AM on 8-15-2007
if you want to make that sort of money visit
http://www.freewebs.com/sgurumoney/index.htm
read it before you make and deicions it not scam of any type it a true thing search around the internet if you dont belive me
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