MySpace Chooses Not To Compete With Facebook

July 14th, 2009 |

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Jeff Louis is a strategic media planner, brand project manager, blogger, and aspiring writer. He's intrigued by innovation overcoming adversity, survival of the fittest brand, history, reading, and similar fun stuff. He writes for sites and is the Public Relations and Advertising writer for the Chicago Examiner.

Although implied, MySpace, part of the Rupert Murdoch media conglomerate News Corp. has decided not to compete with Facebook. Over the last couple of years, MySpace has lost revenue and users while Facebook has gained on both fronts. Instead, MySpace is changing their business model to an entertainment portal.

The new positioning, announced by Chairman Rupert Murdoch, is “refocusing” the beleagured site as a place where people with common entertainment interests will be able to connect. The Wall Street Journal, another News Corp. property, reported that neither Murdoch, nor CEO Owen Van Natta, provided specific details regarding the change. The restructuring follows what has been a tough year for MySpace: first, they were overtaken by Facebook as the largest social media networking site in the world, and then they announced a 30% US staff reduction as well as a 66% cut overseas.

The entertainment tack is an attempt by MySpace to build on an existing strength as a Web site for recording artists and bands to showcase their music and find fans.

Over the past month, MySpace dropped the “.com” from their name and no longer uses their well-known tag “a place for friends.” MySpace is already a popular site for musicians and artists, so the rework will definitely play to the site’s strength.

With MySpace out of the picture and Friendster a distant second, Facebook is without competition, free to increase it’s user base further in the coming year(s). However, it was recently revealed that the Facebook demographic is actually beginning to skew older and has actually experienced losses among high school and college-aged users. It’s entirely possible that the changing demographics on Facebook may open up room for yet another site that appeals to the Adult 17-24 audience.

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Jeff Louis