How would you make $$$ out of MySpace?
Apr 2nd 2007NiaLLLarkinUncategorized
It strikes me that one of the oddest things about MySpace is that it is a medium that attracts very high value attention and very low value advertising. Normally, one would expect a high attention medium to command high value advertising. Not so with MySpace. This must frustrate Rupert Murdoch no end as it runs contra to a basic principle of the TV business.
Rupert clearly feels that with $1-2 million in advertising profits every day that MySpace has problems and is massively underperforming it potential. And it hard to argue with his logic.  What do you think Rupert should do?
And more importantly, what do you think about what MySpace’s are planning to do (as reported today in this article from BusinessWeek)
As numbers go, this one’s a whopper. Last year MySpace users called up an average of 31.5 billion unique page views per month. That’s as though everyone on the planet visited the site once a week. And yet, the big kahuna of social networking racked up a paltry $90 million in ad sales. Not exactly what Rupert Murdoch had in mind when his News Corp. paid $580 million for MySpace nearly two years ago…
http://www.businessweek.com/magazine/content/07_15/b4029059.htm?campaign_id=rss_daily
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