MySpace's Grim Financial State Leaked
It was just a few years ago in 2008 that MySpace was on the top of their game, pulling in $900 million in revenue. A year later, management started leaving as page views dipped. Now MySpace is up for sale, and the pitch book for prospective buyers has been leaked. It paints a pretty grim picture of the once great site's future.
For fiscal 2011, MySpace is looking at a projected $109 million in revenue, but a whopping $274 million in expenses. That works out to a $165 million loss in just one year. After 2011, the pitch book starts spinning fanciful tales for 2012 and beyond. News Corp believes the site can be profitable in 2012 by reducing expenses to about $69 million. Similar results are predicted in future years.
MySpace continues to lose huge numbers of visitors each and every month. It's hard to see how the predictions in the pitch book can be accurate past this year. When it comes down to it, News Corp will be lucky to get much of anything for MySpace. What do you think will become of MySpace?
Comments
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zefrem7
April 13, 2011 at 4:40pm
I've always hated MySpace. Why? Clutter... Giving users the option to customize their pages seemed like a cool idea but what you got was a mess. Example: First time visiting I click on a friend's page and a terribly obnoxious song starts blaring at me. How do I turn this off!?!? I don't know because the player is hidden somewhere due to terrible page layout. So I look and I look but I can read anything because they've chosen a horrible, gaudy background and made the text a dark blue. How am I supposed to read that. Oh crap now I'm stuck on this page, shitty music screeching in my ear!!! EXIT, EXIT, EXIT... and I never went back again.
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eikichi
April 12, 2011 at 9:34pm
MySpace was a fad, just as I believe FaceBook is a fad. I had a MySpace page, deleted it a few years ago and never fealt the need to make a FaceBook page. I really no longer see the point, but then again I'm also married now and not looking for dates...
The only way that a site like MySpace or FaceBook would be successful is by being the biggest. Who wants to manage accounts on several different similar social websites to comunicate with friends who are spread out across multiple sites?
As soon as any other site starts to gain traction and attract users the shift of power will start again. Be it diaspora or something else, the cycle will continue.
What I really can't wait to see is the first company to get burned by having a social following. When having a social following in such a fickle and un-controllable format becomes a liability for large corporations just watch as they all jump out of the pool. Nothing is more obnoxious to me than having respectable companies beg me to "become a fan" on their corporate FaceBook page. Is being a corporate shill the new fad?
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stradric
April 13, 2011 at 11:51am
Facebook may be a fad, but I think it has a lot more staying power than MySpace. For one, it's the largest site on the internet and just about every other web site worth using (MPC for example) uses some form of facebook integration. There's clearly a need for catch-all social networking and I think Facebook fills that need fairly well. It's not clear that that will change anytime soon or fizzle out as fast as MySpace did.
With that being said, I have many gripes with Facebook and I try to use it as little as possible. But that doesn't change the fact that it can be useful and many people use it as if it was the only site on the internet.
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D00dlavy
April 12, 2011 at 9:18pm
I lost my virginity to a man on MySpace. It will always hold a special place inside of me.
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Cleaver
April 12, 2011 at 10:54pm
I was deliberating in my head on wether you were a man or a woman based on your comment. Then I understood the historical context.
+1 Internets, sir.
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ShyLinuxGuy
April 12, 2011 at 8:06pm
I remember when everyone had to have a Myspace. I had one, too. Then, I switched to Facebook. Then, I figured how Facebook (and social networking in general) was a WOT. Don't know why I signed up for one, I had friend requests from people 20 or 30 miles away that I didn't even know, and the people I did know didn't prove to me that it was worthwhile to use. Add the fact that you waive your rights to privacy using FB, and I am a private dude by nature, not that I have anything to hide. I don't like the fact that companies capitalize on content within someone's page.
Was thinking for a while about Twitter, my gf is begging me, but that's a WOT too...oh, I picked my fork up to eat my first bite of spaghetti...I set my fork down...I grabbed my glass of water...I am now taking a sip...I now have discovered I have to take a piss...(pass on to 5000 people)
Facebook, in about five to ten years, will be pushed to the side, either because something better will come out (count on it), or because people will come to terms that Facebook isn't all that.
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D00dlavy
April 12, 2011 at 9:20pm
First, great post. You're like me, except not as manly. I have two girlfriends on a bad day.
Second... what's a WOT?
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nHeroGo
April 12, 2011 at 4:49pm
You have to dim a lot of lights to save $200M in expenses.
Does MySpace have a FaceBook-page? Just an idea to "amp up their social" as the hip people say.
I just noticed that this articla can be shared using the "share button" and clicking on MySpace. Salty.
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hammeredtoast
April 12, 2011 at 4:15pm
I have never used Myspace, and I've only known one woman who ever has. I know they had a great 2008, apparently, but honestly, from my perspective, they've never been a major player. They were never part of my world.
They were never huge in Canada. We had alternatives.
To be fair, I think Myspace is a good name. It is, period. The problem is, is that we associate it with the cluster-**** that it was in the mid-2000's.
They either need to re-brand the site entirely, or auction the name off for a pretty large penny.
Then again, I'm not sure what my ill-informed opinion matters.
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Andacious
April 12, 2011 at 3:37pm
As far as I see it, myspace was just a temporary placeholder used only because there was no good alternative. The birth of facebook and many other social networking sites filled the void that myspace couldn't fill (ie. security, ease of use, quality of content...). What killed myspace for me (I rarely used it to begin with...) was the utter insanity that came from custom html pages. My favorite thing about myspace was/is the Music pages, they are great for new bands seeking someplace to show off their talents.
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stradric
April 13, 2011 at 11:47am
I'd like to point out that Facebook is NOT secure by any means. They don't even have sitewide SSL (you can enable it, but it will disable itself if you visit apps.facebook). Also, there are enough apps that steal your data and even infect you with spyware that considering Facebook secure is laughable.
Ease of use? Yeah maybe. There's enough ajax on Facebook to call it user friendly, but they still obscure security and privacy settings as well as change those settings on you whenever they roll out a new paradigm. So they lose there too in my opinion.
Quality of content? The content on facebook is your friends. If you have a lot of friends that post retarded nonsense like "going to the mall later" then I'd have to call BS on the "quality of content" as well.
Facebook has its uses, but don't kid yourself into thinking any of the ones listed are part of those.
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