Webshots Targets Collegiates With Community Site

I was just looking over my bloglines account and found an older article that was posted by ClickZ. The article is about how Webshots has developed CollegeLive, a program which is only available to college students. From what I can tell it seems like it is pretty similar to the facebook. Their site will aim to create an environment for its members to interact much like the facebook does and will offer social planning tools that will allows its sponsors and its users to promote events.
I am interested to see how this company plans to survive in a market that is already so defined. Because of its late start I feel that it is questionable that they will survive. Sites like the Facebook and Myspace are already so developed and have such a following that I feel it would be hard for a company to come how take their market share.