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 sites  that could face the axe. But is this doom and gloom attitude accurate or just  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.

Source

Article Written by

I have been writing for Lockergnome for eight years.