Thursday, November 12, 2009

Is Facebook the future of micropayments?

In the ongoing saga of paid content on the Web, Rupert Murdoch is once again threatening to pull his Web sites from Google's search results.
In a Sky News interview posted online this week, he said "There's not enough advertising in the world to make all the Web sites profitable. We'd rather have fewer people coming to our Web sites, but paying."
Meanwhile, social game maker Playfish, with estimated revenues of up to $75 million from selling virtual goods in its games on Facebook and other platforms, has been acquired by Electronic Arts in a deal worth up to $400 million.
The company is not alone in turning virtual goods into gold: Playfish rival Zynga reportedly brings in over $100 million in revenue (a proportion of which, admittedly, is driven by schemes in which users receive virtual currency when signing up for questionable special offers).
Even The New York Times is heralding the "real paydays" being delivered by virtual goods on Facebook; such stories run counter to the common wisdom that social networking sites are difficult to monetize.
CNN

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