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MySpace Joins Google Alliance to Counter Facebook

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					                                                           Business & Management
                                                           IB diploma program
                                                           Lukas Bosko, 3IB GJH Bratislava
                                                           lukasbosko@gmail.com




Article of 44th week in year 2007:

Business Shorts
MySpace Joins Google Alliance to Counter Facebook
By MIGUEL HELFT and BRAD STONE

SAN FRANCISCO, Nov. 1 — MySpace and Bebo, two of the world’s largest social networking sites,
on Thursday joined a Google-led alliance that is promoting a common set of standards for software
developers to write programs for social networks.

The alliance now presents a powerful counterweight to Facebook, which, after opening up its site to
developers last spring, has persuaded thousands of them to create programs for its users. The
addition of MySpace, the world’s largest social network with 110 million active members, and Bebo,
the No. 1 site in Britain with 39 million active users, could also put pressure on Facebook to drop its
own standard and join the alliance, called OpenSocial.

“OpenSocial is going to be become the de facto standard for developers right out of the gate,” said
Chris DeWolfe, chief executive of MySpace, in a press conference at Google’s headquarters in
Mountain View, Calif. “It will have access to 200 million users, making it way bigger than any other
platform out there.”

The open standards could create a boom of innovation around social networks as applications reach
more users than ever and encourage developers to create more Internet tools.

Google and others said they had invited other social networks, including Facebook, to participate.
“The most important principle about openness is that everyone is invited to join,” said Eric E.
Schmidt, Google’s chief.

But a spokeswoman for Facebook said the company had not yet been fully briefed on the initiative,
though it expected to have a meeting with Google engineers Friday. The company said in a statement
that it would evaluate OpenSocial one it had a chance to study it.

Other members of the OpenSocial alliance include the social networks Friendster, Hi5, LinkedIn,
Plaxo, Ning and the blogging network SixApart, as well as the software makers Oracle and
SalesForce.com. Creators of several of the most popular programs on Facebook, including Slide,
RockYou, iLike and Flixster, have announced their intention to write programs conforming to the
OpenSocial standards.

The alliance is not likely to erode the popularity of Facebook or immediately alter the dynamics of
the social networking market. But it could help revitalize the sites of some of its members, which
have seen their social networks eclipsed by the popularity of MySpace and Facebook. Orkut, Google’s
social network, for instance, is popular in Brazil and a few other countries, but not in the United
States.



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Google may benefit in other ways. As other social networks draw more users, it could sell more
advertising on those sites. The Internet search giant already has a $900 million advertising
partnership with MySpace, and sells advertising on various other social networks. Its ads sometimes
appear inside the applications created by third-party developers.

At a news conference, Joe Greenstein, the chief executive of Flixster, whose applications allows users
to share movie recommendations, demonstrated his program running inside MySpace.

“We are excited about OpenSocial,” Mr. Greenstein said. But he added that Flixster was not planning
to pressure Facebook, where millions of members use the company’s program, to adopt OpenSocial.

Other developers said that the OpenSocial standard does not necessarily mean their programs will
work seamlessly on all the partner sites. They say they will have to wait to see how deeply and
effectively each social network implements the common standards into their sites.

Blake Commagere, the creator of popular Facebook programs like the Vampire and Zombie games,
said certain social networks may not cater to developers as well as Facebook.

Jia Shen, the chief technology officer of RockYou, a top developer, said his company would still
concentrate much of its efforts on Facebook. “Facebook is still the default social network you are
going to go with right now,” he said.

Source of Article:
http://www.nytimes.com/2007/11/02/technology/02google.html?em&ex=1194062400&en=c1938ad69c642b40&ei=5087%0A


Short summary:
There is another big issue on IT Business. New way of internet service started – social networking
service. Big fight for people is between biggest providers: MySpace and Facebook. Community of
programmers is called OpenSocial. They provide services like blogging for wide publics. Through
social networking service you can chat with friends, post articles on your webpage and create
webalbum with your photos and many others without previous programming experience. This
community already has together more than 300 milions of people all around the world. Myspace has
more users but Facebook has bigger increase of registered users per one month. Who will win? Black
or white? Microsoft or Google? MySpace or Facebook?

Outcome:
Providing services such as MySpace or Facebook do is big deal. When some page has many millions
registered users and is one of the most visited webpage, there is another side of its success. Like
MySpace did, it sells rights to Google to advertise on its page. Now, Myspace is under Google
services. The same did last month Microsoft, which bought 1.6% of Facebook for 240mil$. Probably
just because of advertisement.
New user can be confused with choice of best service. Market offer wide range of products, choice is
up to you. Facebook has Application Program Interference, which helps with functionality. Anybody
can make new feature for it. It is like building with Lego. Giving people base and bricks was decided
about future of Facebook. MySpace does not provide this.
Last point is – why we need to have more blogs. When you came to US and say that you do not have
MySpace, you are out of group. Everybody has it. Now I do not know which blog I should make.
Maybe I should wait for a few years, when all this services will be under one company. Who will
acquire it? Google or Microsoft…




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DOCUMENT INFO
Description: An article is written to inform that the social networking sites MySpace and Bebo alliances with the world number 1 search engine Google to oppose their competitive social site Facebook.