Just days ago, Chief Executive of MySpace, Owen Van Natta, stepped down after only a year in the job. Reports have suggested that the departure has come following internal strains within the business.
Five years ago News Corporation bought the online social networking site for a staggering $580 million, believing they had acquired a significant lead in online media and good relations with the music industry. In its heyday the site was making over $1m in advertising revenue, just from its homepage, however the site has been on the decline ever since, and now Facebook is now firmly the number one, boasting 400 million users worldwide.
MySpace used to pride itself on helping stars such as Lily Allen to gain exposure and secure record deals, but with such a huge decline in the share of the market, where will aspiring bands go to share their music?
Many say that Rupert Murdoch, an expert in traditional media businesses, struggles to understand the speed and innovation required on the internet. Could it be this is one area News Corporation is unable to have the monopoly?
The technology business is unlike any other; once an area is on the decline, it’s unlikely to ever reclaim its place.
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