Music and games firms take their leave of MySpace
Music used to be MySpace’s strong suit, but Adweek reports that some in the music industry are now abandoning the social network.It carries a report about music ticketing startup Ticketfly. A natural fit for the News Corporation (for now) owned social network, but the site has almost zero dealings with MySpace. Its founder says the music business is now all about Twitter and Facebook.
The story comes in the same week when social gaming firm Zynga is also reported to be pulling some of its games from MySpace as well.
Ticketfly founder Andrew Dreskin says the music industry now turns around Facebook and Twitter when it comes to social networks. How does he see MySpace? “MySpace is pretty much an also-ran for what we do”.
“What Ticketfly does, exactly, is follow recent conventional wisdom that every online interaction should be made social. The company was formed to fill what it saw as a gap in the offerings of Ticketmaster and its subsidiary Ticketweb, the latter a company that Dreskin and his colleagues sold to Ticketmaster in 2000 for $35 million, Adweek reports.“
The news about waning interest from the music industry (granted this is one example and there is still plenty of music on MySpace) follows recent reports that advertisers were abandoning Myspace as rumours of sale to Vevo swirled.
But music and advertising are not its only problems. There are also reports that the booming social games market is taking its leave too. Zynga is reported to be shutting down games on MySpace. Zynga is said to have axed several games on MySpace including ‘Mafia Wars’, ‘Fashion Wars’ and ‘YoVille’.
“It’s virtually impossible not to think of the decision to cancel the games on MySpace as a consequence of the social network’s catastrophically declining popularity, massive layoffs, and the resulting sale process. However, for now, at least, Zynga is still providing its other games to MySpace for users to play,” PC Magazine reports.
Since the talk about a sale to Vevo emerged there has also been mentions of other potential buyers for MySpace. Most recently MySpace was linked to Chinese internet firm Tencent Holding (that is the name of the company not its bid price).
The WSJ.com also reported recently that News Corp had contacted venture capital firms about a Myspace deal in a move that might see it combined with another site in return for equity.
Myspace is attempting to reposition itself as a hub for music, entertainment and games, but its traffic is plunging. In February, Myspace traffic declined 44% from a year earlier to 37.7 million unique U.S. visitors, its lowest monthly total since February 2006, according to comScore Inc.
The News Corp. segment that includes Myspace reported an operating loss of $156 million for the quarter ended Dec. 31, primarily due to the site’s poor performance, the WSJ reports.
Last month there was also talk of yet more talk of job cuts. Those follow News Corporation saying in January that it would cut almost half (47%) or 500 of staff working for its beleaguered social networking site. Whoever buys MySpace will be picking up a lean company that has 1,700 jobs in two years.