New Social Network Start-up Kaioo Bets On Privacy
By Dianne See Morrison - Mon 03 Dec 2007 02:36 AM PST
German social network start-up Kaioo hopes to become an online refuge for users seeking a haven from social networks such as MySpace and Facebook, where, as the IHT reports, “advertising and the sales pitch are becoming as elemental a social ritual as flirting.”
It was perhaps serendipty that the the Hamburg-based company launched in November, just as Facebook found itself in hot water over its Beacon advertising program. Founded by former Bertelsmann business development executive Thomas Kreye, it is pitching itself as a non-profit organisation that values its users privacy above all else. It has promised to donate any profits it might make from advertising to charity. How serious are they about privacy? Germany, their launch country, has some of Europe’s strictest data protection privacy laws, to which they will have to adhere.
The start-up launched with German and English versions and has signed on 5,000 users so far, mostly in Germany. It has backing from Sony (NYSE: SNE) BMG CEO Rolf Schmidt-Holtz, who has put up at least 500,000 euros (£357,000) of his own money and is aiming for a global presence with plans to launch five other language versions, including Spanish and French. Of course, even non-profits need to make money to keep operations ticking over. Schmidt-Holtz said he is talking to potential advertisers. He is also hoping to sign on music groups for interviews, live streaming music or free song downloads.
Posted in: Companies, Facebook, Countries, Europe, Germany, Social Media
