Social Media Networks Facebook Has Outlived: Capazoo Goes Kaput
Walmart’s (WMT) The Hub launched in 2006. What teenager wouldn’t love to hang out online with other friends at a virtual Walmart? Especially when their parents received notifications if they were busted doing something against The Hub’s rules like posting an objectionable video. “Hubsters” stayed away in droves, and this experiment enjoyed a six week lifespan.
Bolt did social networking and video sharing starting in 1996, making it a Facebook contemporary, but that video sharing aspect of Bolt proved problematic — copyright violation resulted in bankruptcy and a year-long shut down of the site — and it never recovered. Bolt closed for good in 2008, no longer posing a threat to FB stock.
While Facebook wanted everyone to join (resulting in the site becoming the social media service your parents and grandparents use), VitalSkate decided to stay cool by focusing membership on skateboarders and extreme sports fans. But, it turns out, that demographic wasn’t enough to support a social media site. VitalSkate launched in 2006 and suffered its final sick wipeout in 2008.
Eons tried to do social media for the over 40 crowd, but FB won over those baby boomers. In this case, “Eons” means roughly six years, with the social media site started by a Monster.com co-founder and backed by health benefit provider Humana (HUM), crashing in 2012.
What happens when our neighbors to the North try to create their own social media site and attempt to solve that monetization issue by turning it into a paid membership/pay-for-post pyramid scheme? Capazoo! The social media site launched in 2006, quickly degenerated into a series of lawsuits and fraud and embezzlement accusations, went bankrupt, managed to attract investors for a 2007 relaunch then petered out sometime in 2008. Not every social media site can stage a comeback like FB stock did.