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MySpace
Founded in 2003 by the California-based company eUniverse/Intermix Media, MySpace soon became one of the most popular social networking Websites in the world. By 2010, it featured at least two dozen national and linguistic versions. The domain was purchased by the News Corporation in 2005 and became part of the media empire founded by Rupert Murdoch. Almost from its inception, the site presented itself as a virtual sphere bringing together young pop-culture talent—especially musicians—along with their potential audiences.
Based on the number of monthly unique visitors, MySpace took the leading position among U.S. social networking Websites in June 2006 and kept it until April 2008, when it was overtaken by its most fervent competitor, Facebook. In 2010, Facebook outpaced MySpace four to one in the number of member accounts. Both Websites are often compared in terms of the social structure of their members. While Facebook seems to attract more affluent, college-educated people, MySpace is increasingly perceived as the place where high-school educated constituencies with comparatively lower socioeconomic status tend to gravitate.
At the time of its launch in August 2003, MySpace was conceived as a competitor to the first generation of networking Websites such as Friendster, Xanga, and Asian-Avenue. At the time, the most popular U.S. networking Website, Friendster, was considering the introduction of a fee-based membership, which alienated many of its early adopters and consequently gave MySpace its initial boost. According to danah boyd, the group that catalyzed MySpace's fast-growing popularity consisted of indie-rock bands that were expelled from Friendster for failing to comply with its profile regulations. Many indie-rock bands consequently migrated to MySpace, and some clubs started to advertise their music events on the site. The dynamic of fans and bands created a synergy that became a staple feature of MySpace. Shortly after its launch, the site was discovered by teenagers who wanted to follow their favorite bands and, at the same time, to socialize with each other.
A Data Gold Mine or Shaky Investment?
In July 2005, Intermix Media became part of Rupert Murdoch's News Corporation. Murdoch purchased the Internet startup for $580 million, of which $327 million reportedly went toward its most valuable asset, MySpace. The sale was unsuccessfully contested by Brad Greenspan, the founder of eUniverse and a minority shareholder, who claimed that the actual market value of the company at the time of sale was $20 billion and the deal consequently defrauded shareholders. At the time of the sale, MySpace had about 17.7 million unique monthly visitors and was one of the fastest-growing virtual communities. As a new flagship of the News Corporation's Digital Media Group, the site continued to grow. In 2006, MySpace signed a 3.5-year exclusive advertising deal with Google worth $900 million. Consequently, the Website became increasingly used for data collection, tracking, and analyzing the online behavior of its members. According to a 2007 survey done by comScore and the New York Times, MySpace had on average about 1,229 opportunities to collect personal preference data on each of its users in the course of a single month. Such information allows the Website to charge premium prices for ads carefully tailored to the interests of each single member because of their subsequently high response rates, a strategy known as behavioral targeting. It is continuously challenged by privacy advocates despite the fact that companies like MySpace argue that they substitute any personal data from their customers with identification codes when dealing with advertisers.
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- History of Social Networking
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