MySpace: A social network with no employees
Filed under: Company News
MySpace, the large social network that is part of News Corp. (NWS), has been losing ground to rival Facebook. Its answer to the trouble has been to fire people in an attempt to do what business school professors say is impossible -- cut costs as a means of saving a business.
A little over a week after dismissing 300 people in its domestic operations, MySpace is firing 300 people overseas, which will cut its staff outside the U.S. to 150, News Corp announced.
MySpace's struggles are really not unlike those of Facebook or fast-growing Twitter. No one has come up with a strategy to turn the hundreds of millions of users that the three sites have into substantial revenue. Industry insiders say that Facebook will lose money on $500 million this year. That is not much revenue for an internet property that has over 200 million members.
Social networks have so little revenue that they may be able to operate without any people at all.
Douglas A. McIntyre is an editor at 24/7 Wall St.
Reader Comments (Page 1 of 1)
6-23-2009 @ 8:55AM
Bookface said...
HAHA! Facebook will take over the world.
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6-23-2009 @ 9:32AM
LQuinn said...
We must keep in mind that social networking is still a relatively new trend. Our social media model is just starting to evolve, due to the obvious declining popularity of MySpace and the dominance of Facebook. What's next? How are social networks going to retain the attention of their members?
Social Networkers are looking for something different, more unique to the already popular hobby. I suggest checking out a new social network called, www.HopOnThis.com. HopOnThis rewards their members with cash and prizes just for staying active on the site.
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6-23-2009 @ 10:41AM
Just Me said...
I still prefer MySpace to Facebook. It is much easier to read and pages load much faster. Plus the fact that MySpace has protected me from spyware and viruses unlike Facebook. I have gotten 2 infections thru Facebook since I joined about 6 months ago, and have never gotten any from MySpace.
Also, MySpace has been making a lot of changes recently to keep up with most of the features Facebook was offering.
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6-23-2009 @ 10:46AM
Sonney Dey said...
I deleted "Tom" at myspace and my page started loading easier, and my text stopped scrambling and getting dumped.
Delete"Tom," he is evil!
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6-23-2009 @ 1:05PM
sandy said...
me personally, i was a my space addict, just two weeks ago, i went on facebook, and met up with people from my childhood, and i havent logged on to my space since..facebook makes it so much easier, my space is too much with the graphics, always having to send a graphic to another, who has time for that?, than if you dont send one back to another they get upset, its for kids, facebook as targeted all ages...its great!! bye bye my space..
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6-23-2009 @ 1:10PM
andy said...
how quickly things change.. not long ago people thought they needed "myspace" now if they want to hear a song they can just have it " twittered"
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6-23-2009 @ 1:11PM
Aaron said...
Myspace doesnt realize that all of its over seas users are people setting up fake accounts to try to scam other people on myspace. Myspace needs to go through and delete all of the fake users, also people pages take forever to load because they have so many pics on them and just JUNK. Myspace is great for the toddlers who like pretty colors and "BLING". Its also great for meeting myscrap.AKA booty calls.
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6-23-2009 @ 1:12PM
ZaZapper said...
ROFL Facebook will lose $500 million this year even with 200 million members. Is this one of the companies our government is buying? Or is it one we are propping up with free money? Or is one of those investments our friends at AIG and other "leading" (now THAT's funny!!) financial institutions have made in the past? And the answer is YES...TO ALL THREE!!!! Thanks for playing!
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6-23-2009 @ 1:50PM
ImCool said...
I'm starting my own networking company called F***Face.
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