The company has completely gotten over its ambitions to be a full-fledged social network and compete directly with Facebook, and is going to become a media and entertainment portal for young people. This is a direction that’s been hinted at several times before, but it’s actually, finally becoming a reality now. Apparently.
This is clearly the right direction for MySpace Myspace. No, it can’t compete with Facebook. Yes, it still draws a huge audience and has many valuable assets, including music, video and social games.
But as obvious as that strategy is, that’s not what matters anymore for them. On the consumer web, success comes down to execution, discipline and speed in iterating product. But Myspace has suffered from endless management turnover and reshuffles, and has lost that product focus. If it has talented and focused leadership, Myspace doesn’t actually have that much to do to remain one of the most valuable properties the internet.
People tend to forget that Myspace was actually a successful acquisition for News Corp on financial terms. No, they didn’t end up with Facebook, as was thought then, but they did end up with enough cash flow to justify the price. There’s more money yet in Myspace. Now that they’ve settled on a strategy, they’re going to need the discipline and focus to accomplish it.
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