Is the social media sector in crisis?
Bebo’s in danger of disappearing, Ning’s scrapping its free service, and Twitter’s risking the wrath of users with its ads. Is the social media sector in crisis? Or in the process of rationalisation?
"With social networks being created as a business opportunity they need to start off with a free service. Membership and subscription is far easier while it's free and it also helps with the viral aspect to the network. How many of us have received emails asking us to join a network or someone wanting to be our friend – with a commercial barrier this wouldn't happen. Therefore networks continue to offer free services as a way of luring themselves into our everyday life, in hope of monetising us one day in the future."
Neil Davey is the managing editor of MyCustomer. An experienced business journalist and editor, Neil has worked on a variety of newspapers, magazines and websites over the past 20 years, including Internet Works, CXO magazine and Business Management. He joined MyCustomer in 2007.