Big media's losses on social networking sites break through £1bn barrier
Posted in: Internet Use/New Technologies at 21/06/2010 15:01
The media industry has now lost $1.5bn (£1.01bn) on investments in the social networking craze after AOL sold Bebo last week for a fraction of the price it paid for the business two years ago.
The soured investments in Bebo, MySpace and Friends Reunited underline the hazardous nature of gambling big money on internet businesses. Ever-developing applications and a lack of customer loyalty mean social networking sites can become huge virtually overnight and then crash almost as quickly when the next big thing comes along.