MySpace, the social networking site acquired by Rupert Murdoch's News Corporation last year for $580m, could be worth $15bn within three years. US media analyst Jordan Rohan said in an RBC Capital research note that a $15bn valuation was possible. "Media investors may not fully appreciate what has already been done with MySpace or what may lie ahead," said Rohan.
The bullish note came as online ratings agency comScore said MySpace had served more online video content than any other US site in July. MySpace served 1.4bn videos in July; Yahoo! served 812m video streams; and YouTube generated 649m video streams.
MySpace now accounts for 20% of the estimated 7.2bn video streams across the internet. On average three internet users in five are watching online videos; MySpace users watch just over one video per day.
Despite their huge traffic social networking and video-sharing sites have yet to devise a methodology to sell audiences to advertisers, though several experiments are now taking place.
Earlier this month YouTube entered into a deal with Warner Music that will see both businesses sharing revenues generated from ads accompanying music videos.
Lovelace Consulting | 28.09.2006