Piczo, the long-lost Myspace for teens, today merges with Stardoll, the online entertainment destination for young women, and Stardoll’s other property, Paperdollheaven.com. However, it’s probably closer to a takeover than a merger as Piczo’s primarily UK user-base has been dwindling. The three sites will now make up the Stardoll Network, reaching a total of 20 million users a month, most between 5 (yes, five) and 20 years old. However, one does wonder about the value creation here since the young demographic is not known for its affluence, other than ‘pester-power’. Bebo was recently called out as not being as valuable as previously thought for the same reason. But at least the new Stardoll network will be focused. And presumably U.S. Venture Partners and Mangrove Capital Partners will be glad to exit after investing $11 Million in Series C funding in July 2007.
Piczo has really struggled against the MySpace and Facebook giants, and various strategies, like launching a pseudo API, have predictably not helped. The rot clearly set in back in 2007.
But if anyone can make the new network work it’s Stardoll, which is growing at a fair clip. With more than 27 million members worldwide, Stardoll is aimed at young girls who want to dress up virtual dolls. Around 51% of Stardoll traffic is from Europe, 40% from the Americas and the remaining 9% originates from Asia-Pacific. The median age for Stardoll.com members is 15 years old. It also has a growing user base in the Middle East too where trying one new dresses in the real world has a few restrictions.
Piczo was launched in founded in 2004 and is headquartered in San Francisco, California with most of its members in the U.S. and UK. It will continue to be run as an independent site as part of the
Stardoll Network.
These MMO-type social gaming sites aimed at specific demographics are an interesting area.
Whilst some traditional activities transfer well to online equivalents, I really wouldn’t have thought dressing up dolls would fall into that category. It clearly does to an extent, but I wonder if it’s the main attraction or if it’s actually more of a detail in the overall experience – similar to the character creation phase of MMOs.
Is this actually a merger or an acquisition ?
I would argue that the 5-20 age group is actually very affluent as well as influential. Just not with their own money most of the time
What a stupid, stupid comment! *IT IS THEIR PARENTS’ MONEY* you idiot!
Hi,
Thanks for the information.I would like to know more about it.
Snoreta
Extended Stay Motel
“Bebo was recently called out as not being as valuable as previously thought for the same reason.” Surprise, surprise…
This buy here is just another joke in the “web 2.0″ dreamworld. And I have the feeling Twitter will be the next one. Thanks to websites like techcrunch hyping it like crazy (btw: how much money do you get for promoting Twitter?)
I get paid 50 cents every time I say Twitter and £1.50 for it’s use in all letters to my Mom. I think it’s a great deal, personally.
good post, thanks for the info
This is interesting how many different portals with significant user base that I don’t know of.
Thats why I think every idea is worth a try – you never know the demographic you will be catering to.
I wonder if that’s really lucrative?
I wonder if that’s really a lucrative niche?
TechFilipino
This niche (as pointed out) doesn’t seem to be a huge one economically speaking (as parents are cutting back on spending, and that’s where any money in this age group would come from mainly).
I would think that Stardoll has run into problems selling their business because of intellectual property issues around celebrity images. Perhaps this is a way to further drive revenues so that they can afford to strike deals with the celebrities they’re currently profiting off of.
Pooling resources like this one can make sense in a recession, but I have to think that neither company’s investors felt too great about it.
Unless they do an endorsement deal with Hanna Montana or something like the movie Twilight, these sites will go no where. Most of that demographic wants to be where the boys are.
that is soooooooooooo kool LOL ?