Cyworld US Launches - Will It Topple MySpace? Cyworld US, the American version of the popular Korean social networking site, is rumored to be launching this week just launched a public beta.
UPDATE: it just went behind a private beta wall again - luckily, I grabbed some screenshots (below). (There are larger images here and here). UPDATE 2: I just figured out how to access the live site. If you use this url, you should be able to gain access. Having used the Korean version of Cyworld in the past, I can attest that it¹s a fascinating place. In essence, it¹s a closed social network with some blog-like features and its own internal economy. Each user has a ³mini-hompy² - a pixelled room that can be decorated with furniture, wallpaper and other items. All these items must be paid for in Cyworld¹s virtual currency, dotori (Korean for ³acorn²). If I remember correctly, users can buy virtual currency using their cellphones, or purchase vouchers in real-world shops. Users can also buy each other gifts. There is a huge amount of pressure to be popular and have the best hompy. Unsurprisingly, this has turned Cyworld into an enviable money-making machine - in September 2005, BusinessWeek reported that the company was making ³$12.5 million on sales of $110.4 million². It¹s a high stakes game. Judging by the information on the site, Cyworld US will be virtually the same as the original Cyworld - the mini-hompy has become a ³mini-room², but the premise remains the same. So how will Cyworld stack up against MySpace? Well, I get the sense that the demographic will be much younger than that of MySpace, perhaps more of a rival to Habbo Hotel, the popular pixelated pre-teen hangout. And while MySpace allows you to integrate external services into your page, Cyworld is a closed platform that charges for most additional items. Clearly, this is a very different model to most US social networks, and seemingly at odds with the openness proposed by Web 2.0 and new media advocates. But it may prove more successful than the US networks in one crucial aspect: profitability. Monetizing social networks is a tough challenge, and the internal economy may be a real bonus for Cyworld. What¹s more, by targeting the youngest possible demographic, Cyworld has a good excuse to keep the system closed (it could claim to be protecting its young users from the outside world). Cyworld is money-driven and sickeningly commercial. Some geeks simply won¹t ³get it², in the same way they don¹t fully comprehend MySpace and Facebook. Nonetheless, I think there¹s a HUGE amount of money to be made here, and Cyworld is seizing that opportunity. I¹ll be interested to see how this one unfolds. --~--~---------~--~----~------------~-------~--~----~ TELECOM-CITIES Current searchable archives (Feb. 1, 2006 to present) at http://www.mail-archive.com/[email protected]/ Old searchble archives at http://www.mail-archive.com/[email protected]/ -~----------~----~----~----~------~----~------~--~---
