» YouTube, Digg, MySpace: How much is a non-paying user worth? | Digital Micro-Markets | ZDNet.com
So, how much is a non-paying MySpace user worth?Using very rounded numbers, here is a “quick and dirty” analysis:
MySpace 2005 acquisition price: $580 million
MySpace 2006 “friends” user base: 100 million
MySpace 2006 ad revenues: $200 million
MySpace acquisition price reflects an approximate multiple of $5-$6 per “friend.”
MySpace is currently generating approximately $2 in revenue per “friend.”
The MySpace effort to grow ad revenues since its acquisition by News Corp. last year provides would be bidders for Digg, YouTube…a valuable reference for measuring the financial potential of a large, non-paying base of young Internet users.
