MySpace recently lost 10 million unique users. All of these staggering numbers fell in just a month’s time at the commencement of this year according to new figures.
This sheer descend has been attributed to another round of extreme redundancies at the start of 2011 further quantified by the expansion of Facebook, which now sustains 30 million registered users in the UK alone.
In a report presented by comScore, their statistics suggest that MySpace lost 10 million unique users in between January and February of this year thereby lowering their total from 73 million to 63 million in a time span of four weeks.
At round about the same time in the year gone by, when site initiated the first in a set of massive relaunches, MySpace enticed a total of 95 million unique users.
Mother company News Corporation still hopes to make a sale of the sick social networking platform that initially had hopes to revive the same via streaming services, MySpace Music and its rather refreshed focus on entertainment related content.
At the commencement of this year, MySpace chief executive made an announcement about 500 staff members being made redundant whilst also cutting down on international operation to do away with staff.
The site is a subsidiary of News Corporation and has been pushed away from the grid due to Facebook in the last two years. Moreover, due to the major round of redundancies initiated last year, which saw the US manpower reduced by 400 jobs, thereby getting the total to 1,000 and furthermore, international operations also reduced from 450 to 150, these have nonetheless not been able to cover up the large financial losses; thus further cost cutting.
In the words of a senior digital executive while speaking to The Telegraph he said, “MySpace lost $100 million in the first quarter last year. To get it back on track is going to require a massive investment – one which News Corporation it not prepared to make. It has many other priorities to put its money into. So instead, it needs to keep taking costs out of the business while it’s still in its hands.”
In the month of November 2010, Jones declared to The Telegraph, that MySpace had completed its vision of being a social network and also stepped back from being a direct rival to Facebook.
And in the words of Jones: “MySpace is a not a social network anymore. It is now a social entertainment destination.”
The ill struck site saw its UK audience being cut to a half at about 3.3 million monthly visitors, reports of which were presented in July 2010. Therefore, the company is now in all hopes of rekindled triumph with their return to its original music and content roots.
Further on, Chase Carey, Chief Operating Officer of News Corporation said that a sale or even mergers, with the internet giants like Yahoo or AOL were a handful of considerations being scrutinised.
He added, “There are opportunities here to do 20 things [with MySpace] but that doesn’t mean you’re going to do any of the 20. If there’s something there that makes sense you ought to think about it,” he said.
Earlier, Carey was heard saying that the company’s engineers had done a “very good job” at re-sculpting MySpace in a bid to keep at par with then rivals Facebook and Twitter. He added that it would have been quite a daunting task to have tried to sell MySpace before its make over.
News Corporation has procured MySpace for $580m (£373m) in 2008. The asset was momentarily valued at $12bn at the time when News Corp had a go at merging the same with Yahoo in 2007.