Following the news from Nielsen that social networking services from MySpace to Twitter are exploding in popularity across the U.S.--indicating that the population is more comfortable than ever interacting digitally with one another and their favorite brands--a report from Gartner VP and distinguished analyst Andrea Di Maio says it's time for the government to seriously consider transitioning some of its services to social network applications. Gartner's report says that government processes such as human services, tax and revenue, healthcare, and education could one day incorporate social networking tools. It cites the ability of social networks to blur departmental boundaries …

As if getting your identity stolen weren't maddening enough. Forbes.com now reports that thanks to a glut of credit card and Social Security numbers available online, hackers may pay as little as 40 cents to acquire your most precious personal information. The reason? Record hacks like last years breach at Fidelity National Information Services, in which a record 8.5 million identities were stolen, and the earlier hack of Designer Shoe Warehouse (1.4 million identities), have flooded the market, turning underground distribution channels into an overstocked pond. A decade ago, credit card information commanded as much as $30 per …

Advertisers and consumers have long agreed on one thing: There are just too many ads. The clutter makes it increasingly difficult for consumers to enjoy any kind of media and for advertisers to break through with their messages. But help may be on the way--at least online--in the form of a down economy. According to new data from ComScore AdMetrix, the clutter on the Internet may be decreasing. Web surfers are now exposed to 12% fewer display ads than they were a year ago, a trend that is likely to continue as the economic turmoil of recent months takes …

One could be excused for getting pessimistic about Netflix's future right now. The company recently announced it did not meet its subscriber numbers for the third quarter, and then lowered its subscriber estimates for the fourth quarter. But Netflix has a few tricks up its sleeve. The company this week notified customers that it will charge an extra $1 per month for the ability to watch Blu-ray videos -- an option they must opt-out of if they don't want to participate. Analysts say that because most subscribers probably won't opt out, the move could generate an extra $25 million in …

Journalists and investors waiting for the Microsoft earnings call to begin this week sat listening to a suggestive piece of music: The theme from the Lone Ranger (more properly known as The William Tell Overture). Was Microsoft about to come to the rescue? Surprisingly, yes. Microsoft beat analysts' revenue and profit expectations in the period that ended in September, a rare bit of good financial news over these past few months. And while it is still having trouble seeing the future -- like most companies these days -- its forecast for this quarter is assumes that the recession will be …

Just months after officially leaving his day-to-day role with Microsoft, Bill Gates has quietly established a new company with high-tech office space, a cryptic name and even its own trademark. Just what it will do is still anyone's guess. According to public documents, the new company is called bgC3 LLC, and is some kind of a think tank. According to a Gates insider, it's not a commercial venture but rather a vehicle to coordinate the software mogul's work on his business and philanthropic endeavors. But Gates himself, who established the company under a different name in March before changing it …

Odds are you already know someone who is way too serious about his or her virtual life, whether in Second Life or World of Warcraft or some other alternate reality. Well you can now add the Dutch legal system to that group after a court in The Netherlands sentenced two teenagers to community service after stealing virtual items from another child in Runescape. Never mind that the two teens, a 14- and a 15-year-old, had also physically assaulted their victim (in reality). The case dealt explicitly with the theft of the imaginary items in the game, in this case an …

Does it sometimes feel like everyone you know is on Facebook or MySpace, or possibly both? A new study suggests you're not just imagining it. According to Forrester Research, 75% of Internet users now participate in some form of social networking. That number represents a huge spike in social networking -- up 56% over 2007. But adoption rates were not even across activities. For example, Forrester found large growth in participation among those reading blogs and writing product reviews, from 48% to 69%. But only 19% use RSS feeds or tag Internet content, up just 12% from a year …