Are Social Networking Sites Going Down In Flames?

Over at CNet they have a doom and gloom prediction of companies that may be facing the axe, either due to a lack of revenue or because their owners [Rupert Murdoch is mentioned], no longer care about their existance. What is surprising in the article is that both Twitter and MySpace are listed as two social networking sitesĀ  that could face the axe. But is this doom and gloom attitude accurate or justĀ  a headline getter?

According to the article it states that:

Some we won’t miss, of course: the lame, me-too, or single-featured “products” masquerading as businesses. But be prepared. Some Web 2.0 start-ups that are well-loved by many are in serious danger of falling off the cliff.

The problem is that being loved is no guarantee for success. Even being used isn’t enough. Remember Kozmo, the munchie messenger service from the last bubble? Not a person who used it didn’t love it. In the interest of building a user base, the company was OK with losing money on every transaction in its early days. But when the time came for it to become a real business, it was too late. It couldn’t transition to a viable company, and it folded. It was a tragedy.

Though there may be some truth in the analysis of these sites, there is also the possibility that these sites could flourish. As more people stay home due to the economic down turn, these sites could actually increase their membership. Or are these social networking users just a fickle bunch that bounce from site to site with out any allegiance to any one site?

What do you think? Are the days of social sites coming to an end? Or will they continue to flourish?

Comments welcome.


Article Written by

I have been writing for Lockergnome for eight years.

  • Atomboy

    It may not only be social networking sites which face falling user numbers, if Jacqui Smith, the Home Secretary of Britain, gets her way.

    The plan is for the government to collect and store all the data of everyone’s internet and telephony use – for ever.

    This means that every site you visit, every phone call you make, every text you send and – yes – every comment you leave on blogs or message boards will be recorded and saved by the government, in case someone, somewhere does something of which they disapprove, either by accident or intentionally.

    This will not be the Big Brother of reality television, but the Big Brother of George Orwell’s Nineteen Eighty-Four, made worse because of the technolofy involved.

    Start being very afraid or start to fight against this insidious, pernicious and repressive legislation.

    If you do not, forget the internet.

    The game will be over.

  • LucyGirl

    I don’t agree with you on “It may not only be social networking sites which face falling user numbers”.
    I don’t think people lose the interest of sharing sites and you can check the and to see how many boys and girls are chatting each other and soon you will know what I mean.

  • Ron Schenone

    Thanks for the comments and for sharing your thoughts with us.