MySpace The Price is Right

No to OpenSocial’s Offer Although Myspace was slowly being overshadowed by Facebook, OpenSocial’s offer would group Myspace with other smaller social networking sites In June of 2006 Myspace still boasted a 52,342,000 person audience, this was over 35,000,000 more than any other social networking site at the time, including Facebook. A partenrship with OpenSocial would degrade them from the second best to just another social networking site. Any distinction of their worth would be lost.

Capitalize on Alternative Groups Facebook already dominates as the “mainstream” social media network, therefore, MySpace should focus on the members that they already have and embrace the alternative groups that are attracted to MySpace’s diversity. MySpace already holds a monopoly on the music industry’s social networking, and with online music continuing to grow in absolute terms there is potential profit to capture.

Music Never Gets Old MySpace could capitalize by focusing on different aspects of entertainment that Facebook lacks, particularly music MySpace users were outraged when video restrictions were implemented – many felt their freedom was being taken away By reinventing themselves as a video friendly, diverse social network, MySpace would be able to not only retain their current users but also entice many Facebook users who are more interested in music to switch over

Fixing Their Mistake They should have repealed the ban on videos and pictures from external websites such as PhotoBucket. They feared it was free advertisement that hinder the revenues they earned from advertising. But this led to a decrease in users, mainly those who were upset. With less users, companies are even less likely to advertise on the website.

What They Shouldn’t Do Although it may be tempting to add the innovative features of Facebook, they should not. They will not be able to compete with them if they do not differentiate themselves. They need to capitalize on the user-base they have already captured and please the clientele that are already loyal.