Bebo Targets North America

Bebo is getting a lot of press after their announcement of receivng $15 million in venture capital. Jim Scheinman has been quoted in multiple publications that with the new cash infusement they are going to try and build their US market share. From Media Life Magazine:

“Within the next quarter or two we will start making a push in the U.S…It certainly can grow in the U.S., and I think that the infusion of capital they got this week will help that“

Personally I disagree with this strategy for right now. Bebo is starting to do so well in the foreign markets, I think they should keep expanding their dominance in those and other foreign areas. They are doing well in those markets, but they are still #2 behind Myspace in a few European markets. However this could change by December of this year. Scheinman also said:

“The best product in this space [the US] is going to win, and we feel we are the best.“

Even if Bebo was the best, it’s not going to be the best product that wins. Ask any member of a social networking site why they predominantly use a certain site, and the overwhelming response will be “Because my friends on it.”

I certainly don’t think that Myspace will remain on top of the pile for forever. As more and more general social networks with better features such as Multiply.com, Myyearbook.com, and Bebo enter the scene some Myspace users will start to migrate, but whoever captures the “cool” factor away from Myspace will be the one that may finally bring them down.

Even with the better features and design I still don’t think that anyone will have a significant impact on Myspace in the near future unless they innovate the core of the social networking system.

[tags]Social Networking, Bebo, Myspace, Brian Balfour[/tags]