MySpace, Facebook Need To Be Useful To Make Money

Virtual beer and vampires may no longer be enough to keep members of social networks like Facebook and News Corp’s MySpace riveted to their computers.

Instead, the key to the future of these Web sites may lie in more practical functions, such as making plans, booking tickets or checking stock quotes.

“Right now, the big challenge for social networking services is finding a way to simultaneously encourage user loyalty and revenue growth,” said analyst Ri Pierce-Grove of research firm Datamonitor.

Source: Information Week