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.
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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 @ 2:44PM
zyberzing said...
Congrats Aaron,
You win the stupidest post award.
What will you do with all your pennies?
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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6-23-2009 @ 5:38PM
Willy Mays said...
I think you all need to stop tapping your keyboards and keypads in your virtual social club. Get your rumps out of your chair and play some baseball.
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6-23-2009 @ 7:34PM
Dave said...
Good! I hope the bastards go broke! This site has screwed up more peoples lives! Away with it!!!!
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6-23-2009 @ 10:56PM
denocala said...
face book another Fox Con job...
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6-23-2009 @ 11:35PM
JRow said...
Well some of you are correct and some not.. Myspace..Facebook...Twitter.... Social networking...I've been on all 3 for years and all they are is time consuming unproductive jokes...You don't generate business thru these sites..There just that Free Booty call sites that have and are ruinging real relationships, oversees cons trying to scam us, pediophiles scanning for kids pics, or nonsense games for...just that kids... and yes Fakes...Remember when we...people use to go out and actually meet real people and not have computers generate profiles and Matches(.com) for those to ashame to show themselves in person...Myspace , Facebook and twitter will soon be just the same all alike...Fads...The economy is sufffering lets get our heads out of Cyber fantasy space land and get back to work and make something of ourselves..Oh and for those that think I'm pointing fingers...Your wrong..I'll admit they sucked me in to...Until one day I twittered about my family and noticed the next day I was leaving myself and friends wide open for stalking and was stalked..Bye Bye so long catch on now and get off these sites before you get hacked and or get your identity stolen... Peace and One love...
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6-23-2009 @ 11:46PM
Rockin said...
once the hype is gone it comes to an end
I wouldnt miss any of them its like the days of the c b radio
we will all look back one day and laugh .
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6-24-2009 @ 3:29AM
Sandra said...
I like MySpace..including several other sites..never been on facebook..heard of it but never joined it and besides I do not see why people go on about "This is better than that and so forth" I do not see much differ from any other site..they all are good in there own ways..most sites like that i have joined simulare to myspace is no different really in my opinion..I have a friend on facebook to and the things I hear are just the same as some of the other sites have so i dont see no big deal about facebook!!!
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6-24-2009 @ 6:55AM
Jon Mroz said...
It's sad to hear of so many companies cutting jobs. But, while the economy struggles and millions of Americans lose their jobs, the Home Business Industry is thriving. I joined a company called LGN (highly reputable ... look it up) that is making me thousands in a down economy. Check it out ... http://www.EasyHomeEarning.com
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