The MySpace evolution continues
While MySpace was once a leader in social networking, in recent times it has trailed behind Facebook and been overshadowed by the rise of Twitter. Other sites such as Friends Reunited (sold by ITV in August 2009 for US$49 million) have also suffered as a result of Facebook’s resounding success.
It is now MySpace’s turn to falter, and its owners, News Corp, are attempting to revitalise it, beginning with a change of management during 2009, with former Facebook COO Owen Van Natta replacing DeWolfe as CEO. It was a shortlived change however with Van Natta departing MySpace just ten months later in February 2010.
News Corp also appointed former AOL CEO Jonathan Miller to lead the company’s digital media division. In 2008/09 MySpace began deliberately expanding its operations outside the US in order to boost revenue. In particular, MySpace sees Italy, Brazil, Germany, India and China are seen as key markets for growth.
In March 2010 MySpace co-presidents Jason Hirschhorn and Mike Jones announced MySpace would undergo a makeover over the next few months and begin to position itself as an entertainment hub.
MySpace has been working towards this evolution for a while and in April 2008 SonyBMG, Warner and Universal partnered with MySpace to create an online music portal and store. Like iTunes, the MySpace Music portal offers legal downloads and concert tickets.
In October 2009 MySpace expanded its MySpace Music service to Australia and New Zealand. MySpace Music in Australia [http://www.myspace.com/aussiehub] allows users to access a large catalogue of full licensed audio tracks via an e-commerce partnership with Apple’s iTunes. In Australia, Apple iTunes is used as the download provider for click-to-own purchases, while in the US, MySpace has partnered with Amazon. MySpace Music is being rolled out globally after showing such success in the US market. In October 2009 it had 18.9 million monthly unique users in the US and this expected to increase on the back of the international roll-out.
For further information, see separate report: Digital Media – Social Media Networks, Online Gaming & Virtual Worlds.
Tagged in: Global
