Most web hosting users will be aware of Myspace, whether they use it to listen to bands or simply interact with others. However, it has now been suggested that MySpace is not as popular as was expected when social networking took off.
Neil Stapley, founder of Dadooda.com, a content networking website, said that MySpace was failing to generate the traffic expected of it when News Corporation bought it in 2005 as it is "losing business to competitors in an increasingly crowded market".
"The effects of new competitors entering MySpace’s space, so to speak, may have been underestimated," Mr Stapley commented. He asserted that Facebook is now "the social networking site of choice".
"In a broader context we may also be seeing the first signs of the core market for social networking being defined. The growth had to slow one day," he added.
However, the expert said that the social network market will start to separate as growth slows and this will create a demand for new products.
According to Mr Stapley, while this development could be a threat for Myspace, it could also serve as an opportunity.
Rupert Murdoch, chairman and chief executive officer at News Corporation, recently admitted that the alliance between MySpace and Google was not going to meet the $900 million (£541 million) revenues it was once expected to accrue. News Corporation executives said they would be around $100 million (£60 million) less than that sum.
He was making his comments after News Corporation announced a nine per cent increase in quarterly profits but saw disappointing figures for MySpace, which has had its focus repositioned by its owners to be more music-orientated.
As of November 3rd, the most popular social networking site according to e-business web resource eBizMBA.com was Facebook. In second was MySpace, one place ahead of Twitter. LinkedIn was fourth and Classmates fifth.
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