Wednesday, November 4, 2009
MySpace’s “Work in Progress”: Losing Money and Traffic, Blowing Google Guarantees
Did Rupert Murdoch wait way too long to fix MySpace? It’s easy to get that impression from the News Corp. earnings call today.
The takeaway: The site is losing traffic and money and is going to get at least $100 million less from Google than it once thought. “It’s a work in progress,” News Corp. says, over and over again.





Earlier this year, Gawker Media’s Nick Denton announced that he was going to start paying for salacious clips, tips and other submissions, but that he hadn’t worked out the details. Looks like he figured it out: Denton says he paid the source who provided his blog network with the so-called “McSteamy” sex tapes that have earned him both a lot of traffic and a lawsuit.






I’m still on record predicting the demise of seattlepi.com–the online-only zombie version of the erstwhile Seattle Post-Intelligencer. My gut is that even though the Hearst-owned site has an edit staff 80 percent smaller than its predecessor paper, it still won’t be able to generate enough traffic and advertising to cover its costs. But while Hearst isn’t ready to declare victory, it does say that the first two months of seattlepi.com’s life have been “encouraging.” Via a press release, Hearst offers up a bevy of traffic stats that show the site has grown even as its staff has shrunk. Hearst doesn’t offer up any info about revenue, but does say that its “sales and marketing team is highly energized.” Good start.
Sure, YouTube dominated the online video world in April, and Hulu is continuing its rocket ride. But it’s surprising to see that Viacom’s MTV, which squandered its natural lead in online video long ago, had a big month, too. What happened?
MySpace CEO Chris DeWolfe is likely to be on his way out of the company he helped found, and News Corp., which bought the social network in 2005, has a single potential successor in mind. Sources say that person is former Facebook COO Owen Van Natta, who is currently CEO of music start-up Project Playlist. People familiar with the matter tell me that DeWolfe and News Corp., specifically new digital boss Jon Miller, are discussing a leadership change today.
