MIAMI HERALD — Dec 8 — In its latest move to fend off competitive threats, Netflix will let subscribers invite their friends to peek at DVDs they’ve watched and read their opinions. The concept copies an online networking approach that has been popularized by Web sites such as LinkedIn, Friendster and Tribe that provide online communities connecting people who share common friends, hobbies and interests. Netflix expects to enter 2005 with 2.45 to 2.65 million subscribers.
Mark Brooks: I’m surprised social networks haven’t embraced referral rewards programs en masse. How about a free Starbucks coffee for each new paying Netflix member and referer? Social networking theory would have us believe that the connectors aren’t motivated by rewards. Hmm, I wouldn’t mind a free coffee or CD or movie ticket. If you’re going to launch a social network that has a clear and apparent commercial agenda, might as well reward the connectors. Any comments?
Social networking sites in order to survive on their free subscription model will have to harness the power and value of the marketing opporutnity before them. The explosion of free membership, ad supported sites is like nothing I’ve seen in 5 years. Many will fail when they realize that future value and potential pale in comparison to real revenues.
MySpace is quickly becoming my favorite of the social networking sites, even though they are plagued with server and programming issues. The site has hit the “hot button” on the gen x and gen y crowd.