RBC Capital analyst Jordan Rohan has received a lot of press this week because of his prediction that MySpace could be worth $15 billion sometime in the next few years. While that's a good marketing strategy for him to get his name out there, it's extremely premature to talk numbers like that at this time.
Now the other thing he mentioned that he was briefed on from the managers of MySpace (NWS) was that they are going to develop a mobile phone application in the near future. At this point in time this is an irrelevancy; Mobile isn't going to be doing much for adding to the bottom line of companies.
Look at Disney's (DIS) foray into the space and its devastating failure to get subscribers to buy in to its ESPN Mobile service. They spent $150 million to promote the project and were only able to come up with 30,000 users - they're shutting it down.
This is a great example on how you can't believe the hype that is always being thrown around. People are always talking about the next big thing, trying to get you to participate in it so that it will become a self-fulfilling prophecy.
If something as popular as professional sports is offered and rejected by users from a subscriber model, then it has to be realized that most things won't work in this space; with this model; at this time. Never count on any one thing to be the deciding factor on whether you're successful or not; expand across various platforms and segments to give yourself a greater chance at success.
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