News Corp’s Carey: ‘Clearly, MySpace Lost Its Way’

News Corp.’s digital focus rests primarily on ways to make money from extending its TV programming, movies, newspapers and other properties, said News Corp (NYSE: NWS). COO Chase Carey in a talk with Paley Center’s Max Robins. At the other end of the company’s digital spectrum is MySpace, which continues to struggle to right itself. For News Corp., there was some confusion about how MySpace fits into the overall plans. Chase conceded the problems and said that he’s spotted some progress, while acknowledging the difficulties ahead.

“We’ve made a lot of progress on MySpace in the last 9 to 12 months,” Carey said, speaking at the Paley Center in New York. “Clearly, MySpace lost its way. It took on too much and wasn’t focused on core strengths. We spent a lot of time this past summer right-sizing it, doing some layoffs. We have a lot of product launches in the next few months. In terms of the strategy, It’s not about going toe-to-toe with Facebook. MySpace is a content site. It’s not where we need it to be, but it’s headed in the right direction.”

For News Corp. execs though, the main focus is driving digital revenues from its other properties. Chase: “MySpace doesn’t easily relate to our other properties, but there are some ways we can make that happen. We realize that social sharing is not a fad, it’s a fact of life and we can use that. MySpace can help in those efforts, perhaps. The heart of our digital focus is the extension of our other properties.”

Speaking of digital extensions, Robins asked Chase his thoughts Hulu and when a subscription model might be unveiled: “We’re a partner, not the managing partner, so we want to let Hulu speak for itself. We think the management there is doing a great job. But I do believe dual revenue streams are increasingly important. Ad-supported models do have a place in the world. But I do think a successful business needs multiple streams. But I’m not going to set a time frame on that.” The video stream of Carey’s and Robin’s chat is available here.