MySpace’s New Strategy: It’s no longer a Social Network

The battle between MySpace and Facebook for social-network dominance was long over. Facebook won and MySpace needed a new direction to stay competitive.

You have probably heard by now that MySpace had recently gone through a design facelift. The new design was to support its new strategy. It’s no longer a social network. Instead, it’s now an entertainment-network, connecting you to your favorite TV shows, movies, music and celebrities. MySpace has finally decided to play to its strength.

Just go to the music category and you will find that MySpace is superior to competitors in this field. Musicians and Artistes can customize their page according to their image, and user experience is enhanced with sample music, and updates of their idols’ latest events and performances. In my opinion, this is a great place to sell music.

Just one problem, users are abandoning MySpace for the better social network, Facebook. This is precisely why MySpace has chosen to change its strategy and reposition itself as an entertainment network.

With constant ups and downs, MySpace has to convince users that its revamped site deserves a second try. Time is running short, as the chart below suggests a worrying trend.

Traffic is consistently dipping and we wonder if MySpace’s new strategy would be effective enough to prevent it from falling further.

Its trendy design suits its Generation Y audience. Looking at MySpace’s strategy from bird’s eye view, the stakeholders who’re going to drive MySpace to success are celebrities. If celebrities were to adopt (or readopt) MySpace, I’m sure fans would follow. Adopting a niche position is good but is MySpace neglecting other audiences? This is where Facebook becomes an obstacle, again.

Facebook is unique because it is able to appeal to the mass while maintaining the cool factor. Unlike MySpace, Facebook has huge market potential with a growing pool of 500 million users. Judging by user base and network effect, Facebook would still be a better choice for celebrities for advertising efforts. It may not have the best tools to share music or display videos, but it’s the best platform to connect with the mass. Often, videos go viral because of multiple re-sharing on Facebook and Twitter. YouTube’s huge viewer reach also contributes to the network effect.

That is why we’re seeing Lady Gaga and folks connecting with millions of fans on Facebook. Of course, having both Facebook and MySpace would be ideal. But as users, it’s really hard to maintain both accounts. Surely MySpace would be sacrificed if forced to pick between the two. But other than going down the entertainment path does MySpace have any other choice? I would say, no.