Step 1: Identify Platform Communities

Successful catalysts know who needs whom and why.

That is, successful catalysts have deep knowledge of how, where, and when their different customer groups need each other; how these groups interconnect; and how they can most efficiently and effectively employ the two-sided tactics to facilitate those interconnections.

• Identify distinct groups who need each other
• Determine why and how much they need each other
• Evaluate who else is serving the community
• Compare multi-sided business model with a single-sided one

For more on identifying platform communities, visit Chapter 3.

Meet Me at MySpace

MySpace.com is perhaps the most talked about online social networking site and (according to Hitwise) the most visited website in the U.S. in January 2007. When News Corporation bought MySpace.com for US$580 million in July 2005, Rupert Murdoch’s plan was to expand this popular meeting place internationally and to turn it into a full-blown portal, offering free video downloads, a branded instant messenger client, and even voice capabilities.

For now, what revenue MySpace.com has is generated by its advertisers. Obviously, the potential for attracting even more advertisers and more advertising revenue seems significant. It is reported that News Corp. may allow its 160 million MySpace users to post Fox TV shows and other Fox videos on their homepages, which would generate additional online advertising opportunities. The challenge for MySpace.com now is to balance the interests of both of its sides—members and advertisers—so that the positive feedback loop continues.