It is an unsustainable business model. The cost of infrastructure is enormous and the one solid revenue-generating idea (disclosing to all your friends what you just bought) was sabotaged by ‘privacy advocates.’
All you have is display advertising and there is no way they can make money off of that, just ask those 400 people MySpace laid off.
Anyone remembers xoom.com from late 1990’s? Or GeoCities? You did not exist if you did not have a GeoCities address… it is closing down in less than three months.
[Edit] The idea of using your photos to generate banners for your friends is a nice one, if they can subdue the negative publicity (and they cannot).
