Net Businesses [8:07 am]
A present success, and a prospective one — from BusinessWeek
With more than 100 million users, MySpace has taken off in the U.S. by attracting a loyal following of young, Web-savvy consumers. Repeating that success in the big, fragmented European market won’t be a cakewalk, analysts say. MySpace’s competitors in Europe already have established themselves with local audiences, offering targeted content in native languages.
“MySpace is entering an extremely competitive market,” says Stan Chudnovsky, general manager for California-based Internet company Tickle, owned by Monster Worldwide (MNST). “It must come up with new features to appeal to a European audience.”
YouTube Inc. is the Internet company to beat these days. Wowed by its meteoric rise — the 19-month-old site dishes up 100 million daily videos — startups and giants alike are crowding into the video-sharing market. Microsoft Corp. (MSFT ) is developing its own service. And this fall, the founders of the Skype (EBAY ) and Kazaa services will unleash the Venice Project, a wannabe YouTube killer built on file-sharing technology.
[...] Even more important, though, is the tricky question of how YouTube can make money off its phenomenal growth while maintaining the promise behind that popularity. YouTube could easily alienate its users by overwhelming them with ads. And the startup has to figure out how to attract a broader group of marketers by filtering more for copyrighted or offensive videos and by creating more channels of similar content.