Are social networks sustainable business at the moment? How long do we need to wait?
From an analysis by Deloitte analyst Paul Lee we read in Daily Telegraph :
1. they may need some additional revenue streams
2. information storage costs are increasing
3. “Average revenue per user for some of the largest new media sites is measured in just pennies per month, not pounds.”
4. Concretely twitter and facebook did not make nearly any revenues yet.
5. More concentrated in growth, facebook cancelled a plan to allow employees selling shares
—-
Social networking, for the moment, did not find a way to be sustainable. They are, for sure, working on building revenue streams to continue providing their service, and, if they do not find it soon, they will be in trouble.
1 comment
[...] know it’s not easy, and it is already recognized that social networks will be soon in trouble if they do not find cash. We also know that youtube (ugc) is performing in terms of finance much worse than hulu [...]