Myspace charging to promote applications

By May 2, 2008MySpace

From Social Times:

Over the past couple days, MySpace launched a new page which includes a “featured” section as pictured to below. For the past 2 days all of the applications in that space are Slide applications. Developers began inquiring with MySpace about why only Slide applications were showing up there. The result? At least one developer I’ve spoken with found out that MySpace is in fact charging for those apps to be “featured.”

So how much does it cost to be featured? My sources have been pitched to at between $50,000 and $100,000 for one week as a featured application on the MySpace applications page. This is the first platform which has actively attempted to generate revenue directly from application developers. Additionally, this could be bad news for companies with application ad networks as MySpace is now directly competing with them.

I think this is a short sighted move. In the short term I’m sure they will generate more revenue, but in the long run this will result in less apps being developed and used on the platform and hence a less vibrant ecosystem. There will be no thousand flowers blooming.