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News Corp. On MySpace: “Current Losses Are Not Acceptable”

Talk of possible sale or shutdown circulates again

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[ Social Media]

To be clear: we don’t mean to spread rumors or alarm anyone.  But MySpace employees might want to consider setting aside some extra money and updating their LinkedIn profiles, as one News Corp. exec hinted during an earnings call that a drastic cost-cutting action of sorts may occur.

A large round (or two) of layoffs is one possibility.  A sale or even shutdown of MySpace doesn’t seem to be out of the question, either.  News Corp. COO Chase Carey made the situation sound quite serious.

As reported by the AFP, News Corp. COO Chase Carey told investors late yesterday, "We’ve been clear that Myspace has been a problem."

Then Carey continued, "The current losses are not acceptable or sustainable.  Our current management did not create these losses but they know we have to address them."

Finally, in terms of setting a timeframe for whatever move News Corp. will make, the COO hinted, "I think it is something we look to judge in quarters, not in years."

It’s hard to imagine MySpace could just go dark; to people of a certain age, it feels like the site’s been around forever, and it still has lots more users than many other networks.  At the same time, MySpace has clearly lost the numbers game to Facebook, and the site’s reputation/image has had better days.

News Corp. On MySpace: “Current Losses Are Not Acceptable”


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  • Ally

    MySpace has become the forefront for Music and Entertainment – they just need to let everybody know it. They need to be advertising on sites like Facebook about their almost endless music files with unlimited free play lists. They need a mobile app for the their music and they need a paid and free (with advertising) option for listening to that music on the go. Imagine if you never had to pay for music again and you could search and add it to a playlist as you hear it on the radio. What if you could add it to one of your playlists in your Pandora radio window through an integration or straight from Shazaam on your phone thorough an integration – it’s revolutionary! They know where they need to go…no they just need to get there. Hang in there MySpace, I like the direction you are heading….

  • Guest

    They already have things like that, silly, and they don’t even provide sustainable business models. Pandora almost went bankrupt because of the usage fees the record labels wanted them to pay. I am sure there are mobile apps for things like blip.fm and last.fm and all those other sites that do what you are talking about. It’s already a saturated market.

  • Guest

    if they (MySpace) had stopped tinkering around with the basic format/user shell, different versions and so on they wouldn’t be in the is mess / users tune out for a reason, so do advertisers; I’ll take one quality presence over how many cosmetic makeovers they’re willing to self-inject in an effort to look inviting … they really shot themselves in the foot

  • https://www.stashitwear.com Philip Scott

    Over the past 2 years I have been shut down on about 20 occasions and threatened with deletion by myspace for sending friends requests. When I contacted them they said that people had been pushing the spam button on me for sending them friends requests. When you join myspace it says to check out profiles and send friends requests. How can a friends request ever be considered spam if it is what they tell you to do. I hope they get theirs and they do go out of business.

    • BYEBYEMYSPACE

      facebook is no different

  • http://webnicheempire.com/social Social Network

    I can’t believe that Myspace would have set themselves up for this. I realize things change and Facebook has a lot of attention, but.. On the other hand new niche social networks are gaining ground as well.

  • Guest

    Faux News, selling your info, right wing scumbags, buy up all of the media outlets, so you only get one side of every argument, money grubbing lying pigs anti-internet freedom worms? Ever since “news corps” bought MY space people have been leaving (or left) in droves. If they do sell, who every buys it will be very wealthy, people will come back.

    • Guest

      right on.. i left myspace because of that Murdoch tosspot. I wish he would just f*ck off back to australia or die.

  • Guest

    There was a time when MySpace was my favorite place to make blog entries and join forums. I enjoyed the pleasure of custom pages. But I don’t have a serious use for it anymore. I use FB to keep in constant contact with family and friends, I use blogger for professional posts, LinkedIn for career networking, and I own a dozen domains that I can design as I please. If MySpace is sold I am certain the new owner could re-purpose it.

  • http://www.safetyjunction.co.uk Jase

    I think the problem is that the www is a rapidly evolving juggernaught that shows no signs of slowing down. Myspace got caught by surprise and offered little in the way of innovation for some time.

    It looks the same as it did several years ago, still takes a long time to load some pages and just doesn’t look proffessional on many pages as custom pages have meant that the branding and usability is poor. The site has standard functionality but very often custom user pages hide this functionality. It needs a complete revamp I think – Even a name change to rid itself of any legacy. Not just My[_____] as the new logo is suggested to be. Really? Do they really think this will change around the fortunes of an aging brand?

  • http://terryjett.com Terry

    I hate to hear new like this about MySpace. It feels like a old friend in trouble that one should help.

    As noted in another comment, musicians use it a lot and has pretty much since the early days. Perhaps it is time to turn it over to one of the big music labels like Sony?

    Thanks for the heads up, always enjoy the information from your site.

    Terry

  • matt

    its about time myspace got shut down. It’s garbage.

  • http://www.wwpmmedianet.info Jake Leonard

    Ally is correct – MySpace is the forefront for music and entertainment, but their limitation and/or refusal to promote it elsewhere has often been put on the back burner by bands in favor for ReverbNation, which utilizes MySpace, Facebook and Twitter as social networking options.

    For those who say MySpace needs a revamp, I agree with you. Just don’t do it as constantly and annoying as Facebook does!

    On to NewsCorp: The company has been in the gutter since day one – it’s only being kept afloat by the three majority shareholders: Rupert Murdoch, Warren Buffett and broadcast rival Ted Turner. It makes no sense – FOX News leans conservative, FOX Family and some other NC-owned channels leans neither way and FOX and/or FX lean on the liberal end. Not a wise practice to be running.

    NewsCorp only bought MySpace to try to beat MySpace. Well, when Facebook reached 500 million (despite whether or not the site was created on lies and corruption), well, let’s say that will be pretty much be impossible now.

    Now the financial aspect…..so NewsCorp is pissed off because of some fiscal losses. MySpace has had better days – financially and in the design of the website. But don’t these idiots use Google AdSense on their website – you have enough traffic to use it, dammit!

    Now NC wants to 1) lay off employees (why some of them are updating their LinkedIn accounts should the time come), 2) sell the company or 3) just shut it down. Despite what their option is and if #3 option is implemented, you might want to find another social network to join, because the ball has dropped.

    CAUTION: If NewsCorp shuts down MySpace, be prepared to see them in a bidding battle against Google on ownership of MyYearbook, Tagged or some of these social networking site which now seem purposeless and mediocre.

    I’m done – I’ve spoken my two cents here. Have a great day!

  • dan

    I have a facebook, tagged and myspace accounts. Let’s say that on myspace I go only once every three months, cos really nothing happens there! Is the most boring social network…

  • http://www.worldtravelingartist.com/about Alexander

    The problem of the most of social networks, is that they seem not to be able to see their own value, as they all mesure them self up against Facebook, which is wrong. A social network can be mid-size or even small, and still function well. What I think MySpace needs, is a complete redesign of it’s interface, in order to steam up the user experience.. which is the main reason I almost don’t use MySpace at all.

  • KmR

    Do you want a great virus, love going to groups filled with spam and trolls. Do you want a slow loading network?
    Come to Myspace, we have it ALL, it’s just like being in 6th Grade again, a network that can offer harassment, a virus, and do it in a slow way – Hey, what more could anyone ask for?
    Hopefully Facebook will take note and nit let thngs get out of hand!
    Goodby MySpace……and have a good death!

  • http://www.info-seekers.com Adam West

    Friendsters have its days , now is the time for Myspace too.
    It is a matter of time before Facebook join the club. :-)

  • http://www.ratracewinner.com Escape the rat race

    How can Myspace just close down. Irrespective of whether or not it’s loosing it’s market share, it still generates revenue.

    It needs taking in a different direction.
    Maybe look at same business model as Squidoo.

  • http://www.infinityhamilton.com Guest

    I am in Canada and they won’t let me pay for advertising. They only accept ads from the US. Pretty dumb actually. They are missing out on lots of revenue.

  • http://briarpatchgiftshop.com Joe

    We deal with about 20 companies in our website and brick and mortar store that number has gone down to 6 companies this year 14 have gone out of business 2 of them have been around for 20 years. Look for more of this in 2011!

  • http://www.bloomsofguernsey.com Guest

    Goodbye and good riddance

  • http://www.go-travelguides.com/ Grey Olltwit

    Remembering how popular it was to have a MySpace page not so long ago, it has been dropped liked the proverbial hot potato by most of it’s users in favour of Facebook. All these ‘social networks’ are just fads and what’s hot today is gone tomorrow, such is the fickle nature of the many who sign up for these wastes of time. Facebook boasts some 500 million users. I don’t doubt that so many have signed up but what is the real figure of how many come back and actually use the service? I would guess it is a tiny fraction of that figure. In recently attempting to create a Facebook page for my 800 long time subscribers, I added my list as requested. Facebook proudly announced that 650 of my 800 were already Facebook users and sent them requests to join my new page. How many of that 650 responded. Just 2! No not 200, not 20, just 2, the number following 1. So I continue to do my old newsletter.

    I wonder who can guess how many months/years it will be before we see the same headline for Facebook and Twitter.

  • http://NoStressFizzie.com NoStressFizzie

    I hope they hang around. After all the’re the original social network site and are valuable option for musicians and more.

  • http://www.yourfuturedating.com Guest

    I signed up for a hosting service, they offered free advertising with myspace “great, was this going to bring in new revenue stream for me?” I contacted them and they said they do not cover UK advertising, I do not know if this is the case now, I attempted to do this about a year ago, financial problems build up companies and they should of tried to keep up with other companies like Facebook etc, what is the future for other companies such as Twitter?

    I hope it is not the case they run into problems and wish them and there employees all the best for the future.

  • Deke

    I can’t wait until Facebook burns out also and I can laugh at all the SEO guys and advertisers that thought it was a dream come true.

    In some ways Facebook sucks worse than MySpace.

  • Guest

    MySpace had a lot of potential, but the indie musicians, and I’m a musician, did the single worst thing they could do to destroy the music industry – Posted all of their songs for FREE, and MySpace promoted that policy. All they did was support the Cheap Freeloaders to allow them to go to Myspace and hear all kinds of artists music for free. Almost NO artist made over $100 a year on myspace and that’s a fact. So what good was/is it????

    Some idiot music so-called Gurus were telling indie artists that “Hey, no one knows you so you have to get your Music Heard, post it free on myspace”. What a Irresponsible and Stupid suggestion. Major Label Artists get Air Play and yes, the Freeloaders can turn on the Radio and hear music free, but, the Artist gets paid through their Reporting Agency every single time one of their songs gets airplay, usually 10-15 cents a play and that can really add up given all the radio stations all over the world.

    So what could MySpace have done??? Very simple, employ sound marketing policies. Allow artists to Post ‘CLIPs’ of their tracks for Previews and provide a download of their complete Tracks/Album for sale at the going rate of around 95 cents per download, like iTunes, Amazon, etc. Now Artists could then promote their music and MySpace would then be a place to ‘DISCOVER new Artists and help support them.

    Why should any artist take all of their life practicing their career, pay for their equipment and recording then give it all away FREE so worthless Freeloaders can rape, pillage and plunder their life’s work? It’s insane!

    Even the Freeloaders get tired of FREE Things after a while!. Give away your work and you devalue your image and your work, That’s a Fact! So there goes MySpace downfall.

    Now if you look, years later, many artists are finally waking up to that and seeing all of that ‘Get Your Music Heard’ Crap just doesn’t work! So even now major label artists are posting Clips of their songs. Something that all Musician’s should have been doing a long time ago. If someone can’t hear a 30-45 second clip of a song and know if they like it or not then they have no ear for music anyway. Also, if they’re too damn cheap to pay $0.95 to help support the artist so they can continue making more music for the public enjoyment, then they aren’t Fans and deserve no respect and certainly don’t deserve to receive FREE gifts!

    It’s not rocket science it’s sound business and marketing practice. So why is everyone surprised that MySpace has eroded into the ground?

    • JC

      99.9% of indie music just plan is bad. It’s not worth wasting time on. You may think you are real hot but your not. So don’t try to be paid for your garbage.

    • Guest

      Hey… if I want to give away my music for free I will – OK? I don’t care if that erodes your livelihood or not. If people want to listen to my music I am happy for them to do so.
      Do you also go around complaining about free software? magazines? buy-1-get-1-free? or do you think your music is the only thing in this world worth paying for? so annoying….

  • Guest

    I used to be totally into Myspace, untill the management blocked my account. I couldn’t add a single friend for a whole year. After that I said so long to Myspace and hello facebook.
    My anger to how I was treated by management is the main reason I left.
    Good luck Myspace.

  • http://www.silver.ag/en/ Silver

    There are lot of similar “bubble” projects which cannot find monetization model. Expensive shares and no real income. Maybe they should try some dropshipping ? :)

  • Guest

    “Our current management did not create these losses but they know we have to address them.”

    NOT TRUE! Your current management created ALL of the problems on Myspace by taking away ALL the great features that made MS famous. Everyone left MS because Murdoch’s MS team changed everything!

    The final Exodus from Myspace is happening now. Myspace is dead. It will never be resurrected.

    An alternative…A new Website, try SiteModel(dot)net with 1.0 profiles & Original MS features.

  • http://www.pushbukewear.com steve

    Isn’t the problem simply that no-one talks about MySpace anymore?
    One constantly hears mention of Facebook and Twitter… but MySpace never.

  • http://www.myspace.com/amythystamarylis Amythyst

    My experience with Facebook tells me it is not as good as Myspace in a couple of areas. The first is they make you use your real name–so if you want more than 1 profile there you cannot use your stage name as your name that is visible to viewers.
    Facebook does not have a built in music player for bands which also stinks. Plus you have to fan a page rather than friend it if it is a band’s page.
    They can log into many games from Facebook–but I don’t care to play online games there.
    I really don’t care to poke people or be able to send them text messages.
    I also don’t like the fact that people have to know you to ask them to be your friend there. I go online for new friends not the same old ones or people I already know–so if you’re trying to meet new people on Facebook it is practically a waste of time unless you join a site that gets facebook friends for you or a friend finding Facebook group. This can be a bear if you don’t know where to look.
    I think I will always prefer Myspace to Facebook. Perhaps they need to consider linking to outside games like Facebook does–I mean like I play a game that is on a site other than Facebook. They also need to consider perhaps gifting and game credits.

  • Guest

    This is not first or last bad move or bad acquisition by News Corp.

    The chocked several other businesses as well.

    They acquired MySpace when it was hit.

    Then they let it go to survive on it’s own

  • BYEBYEMYSPACE

    Ally, classic idiocy – “MySpace has become the forefront for Music and Entertainment – they just need to let everybody know it.”

    So if no one knows then how is it at the forefront of anything…….

    Myspace had it’s day, turn it off. No relauch will ever help it.

  • http://www.sitebyjames.com/ Guest

    That’s okay, spreading rumors and alarming people is perfectly okay in my books.

    I think Myspace could very well be the next GeoCities.

    It’s shame too, because what it offered in terms of expression and even design flexibility is bar none way superior to anything facebook is or will probably ever offer.

    The people like myspace, really like it, or liked it. I think Facebook is just a little borg like leaving so many with so few choices.

  • http://www.seo-online-marketing.de Cyrus

    Well, in my opinion this really reminds me to the DotCom bubble a couple of years ago (say, was it 2000?), when all the hype around e-commerce didn’t really work out for the rising stars of the new born industry, as the large sum of people in ordinary markets are not really early adopters, who might help to catch on every trend and turn them into a sustainable, long lasting and profitable service for everybody else. With Myspace (in my opinion) having slumbered over the web2.0 revolution, where i.e. competitors like facebook had opened their business modells to developers world wide on time in order to gain input from their experiences and share it with the others, myspace still delivered pages to the public, where one could only share the same kinds of information with them. By offering an API for developers as well, Myspace jumped on the running train and tried to catch up . – But one of the most crucial things, from which I think, why this could not really work out, is the way, Myspace is actually selling their advertizing: Whilst Myspace offers personally bookable PPC ads in the USA, this is not possible in Europe. Myspace Germany for instance charges horrendously high prices for pay per view ads, which only global players and large companies can afford. – Starting with two to three thousand EURO for a campaign which allows you to place banner ads on for instance the top banners, which no one actually views, as the interesting content in Myspace is and always has been below the fold, where people aggregate and communicate with each other through their postings. This might as well be the downside of their business modell in the USA, as no one would click on a banner, which is only viewable for a couple of seconds before being scrolled out of sight and out of the mind of a possible contact. – Facebook’s site advertizing on the contrary is usually not only much cheaper, but is also much more present on the page, as people tend to have all the neccessary information “over the fold” – without the need of scrolling the ads away. As an Onlinemarketing professional, I tend to see and often know, what industry partners of mine are lacking off. – I could go off and tell you much more about these issues regarding the situation of myspace, but it’s sunday night and i don’t really bother to spend my whole evening on writing about it. Thanks for the attention though…

  • http://www.stratoblogster.com Stratoblogster

    MySpace bought imeem.com for next to nothing, and ruined the best free music sharing site. It was great for all the indie artists but the bulk of society has migrated to FB. They need a new name to position away from MySpace with new buzz and a new format. Otherwise I’m banking on MOG.

  • http://www.stratoblogster.com Stratoblogster

    OH yeah, about the time that Uncle Rupert started talking about making MySpace premium, Facebook was there to catch the churn out. Brilliant!!!

  • andres

    isnt it ridiculous when headlines of sites like this try to fk a website by using the “shutdown” term, common websites are not like classic business, u can have a freakin website on payin 10 dollars a year and a hosting account which costs will NEVER surpass the revenue, they can even use adsense and it would even pay 100 employees, common.

  • http://www.nysilly.com nysilly link farm

    I have the same general consensus as everyone else I think, this is business. in with the new out with the old, if you dont have what it takes to keep up, you get left behind. – charles darwin. I think that rule applies here as well. Sorry myspace, no bailout funds for you.

  • http://www.gaskellguitars.com Kevin Gaskell

    All that needs to happen is to RE MARKET Myspace. It has lost to Facebook but Facebook is for social commentary. Myspace is more music and art focused and it should be marketed that way.

    Bands and artists still use Myspace and a lot of bands owe it to Myspace for getting noticed. It would be a shame if they had to close their doors or sell it.

    Myspace should not even bother to compete with Facebook. They are playing on two ends of the same field. Keep it that way.

    I hope they work out how they can do something like this. It might be that there are not enough artists in the world to prop up Myspace’s remains, once the “mere mortals” have gone and doing the “look my baby did a poo – wee hee hee” Facebook thing.

  • http://www.ScrubMoney.com ScrubMoney

    Remember when you used to be able to put up outside links to your website/content. Then they made it so all outbound links went to a separate page that said “Warning, you are about to go to an unauthorized page at your own risk. ” basically killing the link and stopping people from leaving myspace.

    People wanted to click the link, but myspace wants to sell adds so they stopped it.

    I am a grown (though young) man. I’m not going to work on my useless myspace page when I can share more personal links or advertise my biz on facebook at the click of a button.

    You have to give some benefit if you you want people to use your site. Yahoo Answers understands that by giving links, marketers will answer people’s dumb ass questions.

    Other Q & A sites do not, which is why I don’t “work for them” by creating content for their sites.

    Now Myspace has gotten me laid a bunch in the past, but all those girls moved to Facebook.

    I hope you get the point, look at how much content I gave you for a link.

  • http://www.newsmild.com newsmild

    Thank you for another essential article. Where else could anyone get that
    kind of information in such a complete way of writing? I have a presentation
    incoming week, and I am on the lookout for such information.

  • http://www.sebastyne.net Sebastyne

    It’s a shame. I’ve always liked MySpace more as a website. It has more earthy and warm feel to it than Facebook does. Yet, I hang out on Facebook like everyone else. I’ve got two real friends on MySpace, when all the other friends are on Facebook, and if I want to catch up with my friends -which I do – I am forced to go to Facebook while my corner of MySpace is like a ghost town. I call Facebook a black hole, it sucks everyone in whether they like it or not. I specifically don’t understand why anyone would consider Facebook “cool”, unless they mean the emotional coldness of it.

  • http://www.minnesota-visitor.com/ Guest

    I still feel that Myspace offers a great opportunity for promoting websites and businesses other than the music industry. I have a Facebook fan page for my Minnesota website however it receives nowhere near the level of interaction I’ve experienced on my Myspace that is focused on my website.

  • ex-Myspace cadet

    I have had problems with their website, and attempted to contact support about it,
    but never go a reply.
    So they have already laid off the helpdesk long ago.

  • http://www.agoodread.com Guest

    Why don’t they charge from $10 to $30 per year. If they have loads of people who love the site, they’ll gladly pay the money.

    I think most teenagers spend more than that on one shoe ;-)

  • Guest

    I’ve been there once.
    I came for the music and I left for the music.

    Sampling music may attract certain people but I find it degrading. 30 seconds of a song isn’t a promo, it’s irritating.

    Get the music back and people will follow: like Facebook meets YouTube would be good.
    But not half this and half that.
    So slash all you want if they don’t improve what they have to offer, it will go down as there is no assistance any longer (which wasn’t well either) if you need to ask or report things.

    Many don’t like Facebook that should freshen up the thoughts

  • http://www.joomstore.com.au Noah

    MySpace is another victim of the corporate approach to a simple social networking tool. By over-inflating the cost of advertising and speculative resources, News Corp has shot themselves in the foot by trying to over-monetise this market based on a passing internet trend. Maybe some realistic spending by a responsible owner could solve this in MySpace’s next incarnation — if it has one.

  • http://www.signature.eu.com Web Designers Kent

    MySpace, once the darling of the social networking types has clearly lost it’s charm. With masses of subscribers defecting to FB I think it’s had a good run, but it’s about time it left town BTW their’s a train leaving from Euston in about 15 minutes. So will the last staff member to leave, please pay your hosting fees?

  • Guest

    “MySpace has become the forefront for Music and Entertainment”?

    Nah, Myspace have gone backwards in that market too. These days plenty of fresh bands barely bother with Myspace as it’s not the avenue of opportunity that is used to be.

    In the beginning you could surf over to Myspace and find new bands, fresh bands, that would develop a following, and become the next new thing, but these days new artists are more frequently broken on YouTube, and other sites, that have surpassed Myspace.

    That in itself is essentially part of Myspace’s problem, everything it was built on has been effectively thrown away, and now it isn’t what it used to be, and it certainly isn’t the forefront for anything these days.

    Myspace forgot one big ingredient, as News Corp. bought them out, and tried to turn the traffic and numbers into money. They forgot the people that made the site, they forgot the young struggling artists, and the majority of the worlds young people, who all thought they were cool for having a Myspace, and as a reaction to that the world moved on.

    Myspace made it’s name as an “alternative” site, something on the edge, at “the forefront for Music” that was shared by only the “cool kids”, even when the numbers showed that it was really a mainstream site that most of the non-cool kids used too.

    Now that have tried to position themselves as a mainstream site at “the forefront for Music and Entertainment”, but have the reputation of being distinctly uncool, and for attracting trailer trash, and pedophiles, even though again the numbers prove this image isn’t quite in keeping with the truth.

    But which one would you rather hang out at?

    That’s where their traffic has gone, and where Myspace’s problems lie, because they forgot about the people that make up the traffic, they forgot about their audience, and the image they were portraying to them, and now how do they get it back?

    Once you stop being “cool”, in any walk of life, it’s almost impossible to get that “cool” back.

  • http://www.timmathews.com Tim Mathews

    We have all seen this coming and it should not be a surprise to anyone. Myspace has long been the trailer park of the internet and it is finally coming to terms with it.
    RIP Myspace.

    • http://signature.eu.com Web Designers Kent

      @Tim Mathews – LOL “RIP Myspace” – so true!

  • Guest

    Yes it is somewhat of a saturated market but Mypsace music is different than all these music streaming sites/apps. Speaking of these sites/apps I’m surprised that none of you mentioned Grooveshark.com; It’s awesome and does the things you all mentioned better than the others. Anyhow, back to Myspace — The difference is simple but undeniably profound, all the other sites/apps are places primarily for labels to promote bands, tracks, genre’s etc. but Myspace Music is a place for small and big, signed and unsigned artists to promote themselves! Myspace Music being ubiquitous only levels the playing field for unsigned new artists to promote them selves the same ways the big guys are. For this reason (at least until there is a facebook equivalent for music artists) Myspace music will stick around; the advertising will become exclusively entertainment based, but it will still stick around.

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