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Nick O’Neill, at The Social Times ran a story on May 1 titled, MySpace Begins Charging for Application Promotion.

Short extract:

MySpace-Application-Promotion.Developers then realized a loop-hole to this model… Over the past couple days, MySpace launched a new page which includes a “featured” section… 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.”… 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…. it also means there could be trouble for a lot of smaller application developers…You’ll have to pay MySpace if you want to do that in the short-run and will have choose between using MySpace and other ad networks in the space in the long-run.

Since it was well researched, TechSadhu scarcely doubted the transparency of the article.

In an official statement to TechSadhu, MySpace confirmed the said strategy with substantial explanation.

Edited excerpt:

MySpace Application LogoYes, we’re an ad based site and… we have advertising – this is how we pay for cool initiatives like the developer platform. We also are currently running an “editors picks” program where we reserve some ad space for editorial in Featured Apps – they’re not all paid spots… The app gallery main page was designed to accommodate a wide variety of advertisers – everyone from the brand-driven… to the small / mid tier… who are very performance focused… to the space we have reserved for the editors picks.  Having advertising doesn’t mean we’re limiting developers from building rich and engaging apps.

Here are some points, backing the logical approach:

MySpace Platform Monetization Points

1. ADVERTISING PROGRAMS

  • MySpace Logo.MySpace is an ad supported site, and is focused on balancing revenue and relevancy across all of its business units – including the developer platform.
  • It is common practice for application developers to buy advertising through networks on our platform or other platforms or through Google ad words to promote their applications.
  • Featured Apps in the application gallery are a combination of editorial and paid placement. They are based on sponsorship and sometimes based on editor’s picks (what we think are cool apps).

2. PLATFORM DEMOCRATIZATION

  • By us having advertising on the application gallery, it in no way means MySpace will limit the functionality for developers to build rich and engaging applications.
  • Everyone from Mumbai to Moscow to Michigan can develop on MySpace; whether you’re 18 or 118.
  • All developers are subject to the OpenSocial standards.
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