Why MySpace Should Form A Toll Booth Model

Yesterday there were reports that all flash applications would not function on MySpace. While MySpace is claiming it as a bug that they have fixed, a lot of others are claiming it was a test run to see if a flash block would be effective in eliminating third party widgets. This comes shortly after a great piece by Robert Young on why MySpace could erect a toll booth model.

Is this within Myspace’s right? Absolutely. If other companies were making money off of your site’s traffic and users, you would want a piece of the action too. Is it a smart decision for MySpace? No. Which is why I really hope MySpace decides to do it.

The implications if MySpace blocked widgets:

1. If MySpace blocked all access and tried to develop everything internally, they would never be able to produce as compelling of products as the dedicated teams of third party companies.

2. A toll booth model would increase the costs for widget companies. To stay in business the companies would then have to either charge users or support their app with more advertising decreasing the user experience. Both would lead to less users.

3. Most importantly, a toll booth model would be a direct blow to a core reason why MySpace became popular in the first place; freedom of self expression. A toll booth model would seem more like a parent telling you what was acceptable and what wasn’t.

This could be the first of a few decisions that MySpace will make for MySpace as a business, and not MySpace as a user commmunity. Hopefully users will start to realize that there are better options out there. The start of a MySpace downfall? God, I can only hope.

[tags]Social Networking, Social Network, Social Media, Online Community, MySpace, Widgets, Brian Balfour[/tags]