Myspace continues its downward spiral

Despite announcing in a press conference last November that Myspace would start using Facebook Connect for users to quickly register and login through the social networking website; this hasn't done much to help the site which has continued to lose visitors on a massive scale, according to a report on Business Insider.

Myspace had 45 million unique visitors in January, down from from 70 million the same time last year, according to comScore data. This is probably why the site was put up for sale. As is apparent, its turnaround plan just didn't work.

What was a very embarrassing surrender for Myspace was hoped to bring some short-term life back into the site, while it continues its downward spiral. Even with the recent redesign to the website, a likely shutdown of the website seemed imminent to most, as News Corp continues to lose millions of dollars keeping the site alive.

COO Chase Carey admitted that "there's been a lot of interest" but News Corp will "consider all options" before making a move.

We’ll consider all options - not just a sale, it could be a sale, it could be an investor coming in to it, it could be us staying in with a restructured ownership structure with management. We think a fresh perspective would give them flexibility and an opportunity to get a new life consistent with the right-sizing of the product and the costs.

In previous discussions, Carey had told analysts that Myspace's redesign had been "well received" but "its full potential may best be achieved under a new owner."

The news came following January's layoffs, reducing staff by 47%. Estimates at the time placed the decline in users in the region of 15% since last November.

Image source: Business Insider

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33 Comments

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I happened to pop over there just yesterday because it had been so long since I had been there. I was shocked by what I saw, it was cleaner but more like facebook in some respects. I didn't see any point in it though.

Ugh I hate graphs like that. A quick glance would make it seem like it went from (for example) 90%, down to 5%. The bottom of the graph is not 0. Grrr that bugs me.

I thought myspace was more of a teen thing. The kids, they listen to the rap music which gives them the BRAIN damage... They like to put their music on the page. Facebook is just a profile with personal info and that you can contact friends... maybe play at the arcades too (pet society etc..)

The generation grew up and they've moved on towards a more professional type page. I'll admit I don't like facebook either. It's basically a way to collect personal data from you (i never click the like buttons) it's all NWO. I'm just there because thats where the battle is.

Julius Caro said,
Apart from the obvious reasons, changing the name to my[_____] only made things worse

It was like they were trying to fail.

As soon as a few of your friends go to facebook all of your friends will move over, it's a chain reaction and now only the most myspacey folk are left. Why would you stay on myspace if none of your friends are there.

Rudy said,
You know what's surprising? There's still 45 million people who visited the site

Yes, that's A LOT but when you go from 70million to 45million in 1 year that's a major problem because if it continues to decline at that rate the site will be dead in a year or two.

p.s. but at this point, even though it appears MySpace revived it's interface etc, i think the damage has been done and Facebook is the clear winner. so i just can't see MySpace making a comeback at this point as Facebook is blowing it out of the water in userbase.

probably because the site was bloated and unprofessional looking for ages. this is where i noticed Facebook's immediate big advatnage as Facebook just looks more professional and no bloat.

p.s. i don't really care for any of those types of sites in general but based on initial impression of going to those sites once in a while Facebook is the clear winner in my book.

AtriusNY said,
Why does the chart only cover the US?

because like ICQ, Russians love the thing and are running to it in droves

thealexweb said,
Hahahaha, sorry but it is a little funny watching Murdoch sink, shame about the works being made redundant though

To be fair with his wealth and lifestyle do you think he is ultimately bothered? Yes its a pride thing if the business he invested in fails, But again his wealth is what seperates him from us.

thealexweb said,
Hahahaha, sorry but it is a little funny watching Murdoch sink, shame about the works being made redundant though

I'm not happy whilst murdoch still has any money at all, until all his money suddenly vanishes, when which I shall be very happy.

n_K said,

I'm not happy whilst murdoch still has any money at all, until all his money suddenly vanishes, when which I shall be very happy.

Why do you care? Why do you wish poverty on someone? That is horrible and I'm personally disgusted