MySpace, once the site by which all others were measured, is in trouble. They're lacking in revenue, as News Corp. reported a drop of net income to the the tune of 69%. One of the big contributions to the unhealthy bottom line was MySpace, which lost $150 million dollars. During the same period in the previous year, MySpace lost $88 million.
Clearly MySpace is not everybody's space.
“No, we’re the leading music site now,” said Rupert Murdoch in an earnings call on Wednesday. MySpace Music was listed by comScore listed as the music site receiving the most pageviews in March.
So what's going on at MySpace? How can they have so much traffic and lose so much money? They must be lacking in advertising.
“There’ll be a lot of changes coming through the summer. The early indications—and they’re only early indications—are we’re getting more visitors and they’re staying longer. When that gets more substantial, we’ll get more advertising.”
“Clearly, MySpace is a work in progress, we’ve made a number of changes, the team we’ve put in place is doing some really good things,” said Chase Carey during the same call. He also said “enhancements” were coming. They must be spending money, as the $150 million loss shows.
None of this addresses the bigger picture, which might explain a big part the MySpace dilemma. When News Corp. bought the site, it was already in decline as far as being a favored site. Pageviews can be misleading when you're getting traffic but nobody's loving your site.
NewsCorp at that point was afraid to make MySpace better, as everybody feared that Rupert Murdoch would ruin the site experience by bringing it in line with his mainstream media philosophy. As a result, MySpace didn't make many changes, which became paradoxical, as more people kept fleeing from the site because MySpace had become stale.
I say blow up the site. Quit trying to fix MySpace and instead completely redefine MySpace. Refocus the music and video and stop looking to the past. MySpace needs to reinvent it's future