Focus: Brave new world - Times Online

Focus: Brave new world - Times Online: "STARDOLL is only one example of the dozens of “social networking” firms sweeping across the internet. Led by MySpace, Facebook (in America) and Bebo (in the UK and Ireland), their astonishing rate of growth both fascinates and terrifies “old media” companies.

Along with Google, they form the vanguard of the second wave of dotcom firms dubbed Web 2.0 — businesses delivering services over the internet and predominantly funded by advertising.

Tens of millions of teenagers and students are spending hours creating their profile, or web page, on networking sites — listing their favourite bands, movies and heart-throbs, their hopes and ambitions. They can link to their friends’ pages, add music and video, share photographs, write a blog and send e-mails.

Fostered by the broadband revolution, this is creating new ways of communicating and interacting that many young people clearly find compelling. It also bites big chunks out of the time they have to watch television or read newspapers.

MySpace is only three years old this month, and yet it already has more than 90m users, generating billions of page impressions every month. That represents a huge audience for online advertising.

In May, according to Nielsen/Net Ratings, MySpace was the world’s fourth most-visited website, overtaking MSN and closing fast on Google, Ebay and Yahoo.

Michael Birch, the British founder of rival Bebo, predicts MySpace will become the most popular destination on the internet within a year. Some critics scoffed when News Corporation, the parent company of The Sunday Times, paid $580m for MySpace last year."