2 Comments

Summary:

MySpace has done what few can claim to have accomplished so far this new year: cut its weight nearly in half by slashing close to 500 jobs f…

New Myspace Logo Variation 2

MySpace has done what few can claim to have accomplished so far this new year: cut its weight nearly in half by slashing close to 500 jobs from the payroll. The social-network-turned-social-entertainment-hub skyrocketed to attention after its 2004 launch and by 2005 was viewed by mainstream media like Viacom (NYSE: VIA) and News Corp (NSDQ: NWS). as a golden ticket to the future. News Corp. got the deal done, spending $580 million to secure the social net as the linchpin of Rupert Murdoch’s “get there quick” digital strategy. But it’s been five years since MySpace was the hot next thing — and it enters the new decade as a partner with Facebook, not a competitor with any chance of winning at the same game. Below, some of the milestones on MySpace’s journey from hot to not. The timeline is interactive and has links embedded within the text. You can fill in the rest with our MySpace archives.

Chart: MySpace: From Hot To Not [PNG]
Chart: MySpace: From Hot To Not [PDF with embedded links]

  1. Very interesting.

    I wonder if MySpace will make it as a music/entertainment site. If I had to guess, I’d say “yes, it will.”

    The lesson I take from MySpace’s decline is that you have to carve out a distinct niche and dominate that niche. Facebook vanquished MySpace because Facebook and (the old) MySpace were both social-networking platforms for friendships, and Facebook was better at that. But the new MySpace, Twitter, FourSquare, ShopSocial.ly, Reddit and GoGoBot (a social-networking site for travelers) all have niches, so I think they’ll continue to thrive mutually with Facebook.

    For a counterexample, look at Facebook Places. It doesn’t seem to have hurt FourSquare, and I think that’s because Facebook was moving out of its own niche and into a niche that FourSquare more-or-less dominates.

    Share
  2. The same thing is going to happen to Facebook if they go public. Myspace tried to turn a profit, and the people that go on these “Social” websites aren’t there to buy anything, they’re there to socialize with friends. Myspace was so full of ads on every page you jumped to that people got tired of being bombarded with ads, and switched to Facebook. Facebook keeps getting private money to stay afloat . If every profile only costs $1.00 a year to maintain, they’re spending $600 MILLION a year just for server space! Sooner or later, the advertisers will realize people aren’t there to make any purchases, and will abandon Facebook just like they did Myspace. If Facebook does have an IPO, then they will have to answer to shareholders for profits or the lack thereof. You have to remember Facebook and Myspace have the same revenue model as newspapers: ADVERTISING. If people don’t buy what’s advertised, the advertisers will stop buying space. Myspace and Facebook are no different than the newspapers, except they keep people up to date on a personal level instead of a local or national level. The question is can these type of websites stay afloat depending only on advertising revenue?

    Share

Comments have been disabled for this post