Myspace creating seeds of its destruction.

I was struck by this article on CNN today,  it talks about a cofounder of Paypals new startup Slide.com    The first thing I asked myself is why does a slideshow widget for myspace.com need $20 million in funding.

Turns out there is a lot more to this then just a slideshow.  The company wants to create a recommendation system that will allow anything from dating to price comparison shopping.    Comscore says slide gets about 4 million uniques a month,  from myspace.com

If I was myspace i’d be pretty worried,  you have an entire generation of VC companies being funded growing off the back of myspace.  Once these companies get big they will either get bought out like youtube or begin competing in some way.   There is no VC that is going to sit by and say,  well we have maxed out our myspace traffic lets just sit back and collect profits.

Now if I ran slide.com  I say,  great we have millions of users coming from myspace  but if myspace dies so do we.    I would then say hey,  we are going to create a mini myspace on our site.    We will allow bands to upload up to 5,000 images and audio on our network and only 20 images on our msypace widget.    We will allow people to comment on the photo’s and form social networks around bands.     This site would have nothing but photo albums about bands and a search facility to allow you to search for your favorite bands.    Of course you could also listen to bands music as you browse their albums.  This kind of site would explode and really hurt myspace.

Myspace today is like Match.com of a few years ago.  Match.com used to be the king of online dating.  Now niche sites of every kind are popping up and match.com doesn’t even really compete with sites for jewish singles, black dating etc and the attacks across all niches are increasing every year.    Myspace.com  is feeding many sites traffic via widgets that cater to niche audiences and those sites will end up becoming mega sites that will compete with myspace. 

13 Responses to “Myspace creating seeds of its destruction.”

  1. Money Making Forum Says:

    MySpace will be gone within 5 years.

  2. Markus Says:

    Websites these days don’t really die, they just become smaller or stagnate.

  3. Stephen Sclafani Says:

    MySpace is not ignorant of this situation. They have started putting resources into creating their own competing widgets. They were too late with MySpace Video, but if they have learned their lesson they might not be next time.

  4. Rush Says:

    myspace’s competing widget will be crap. just look at their website design… haha

  5. Eric Dewhirst Says:

    I agree with the premise of your overall statement – being a grouper fish is not a sustainable model if you want to be as big as the fish you are following. Don’t get me wrong it can happen but you have to transition from being the add-on to being the main event and that is not easy to do.

    I think though that Slide.com and it’s recent incarnation is a byproduct of being too late to a previous market. They started out being the next Flickr but never gained momentum – came into to the game too late and the race was already well underway (http://web.archive.org/web/20050901110117/http://slide.com/). It’s tough to watch the party leave without you!

    Cheers,

    Eric

  6. Bisi Says:

    Myspace.com can just buy slide.com and anybody else that is getting traffic from them . Alternatively they can create there own widgets and ban 3rd party widgets .

  7. Jake Says:

    MySpace banned us at Stickam once we became a big enough blip on their radar to be threatening. They made a decision to not compete on the merit of their products and instead are attempting to lock-in their users.

    Although it was very upsetting to many of our users, a lot of them just use Stickam more now and their MySpace profile less. Our growth is faster than it has ever been.

    MySpace doesn’t think Win Win so they will Lose Lose.

  8. Mayo Says:

    Good point Eric!!

    Now back to my coding ;=)

  9. spoiledamerica Says:

    The sooner MySpace disappears, the better.

  10. yhurg Says:

    Good post topic. MySpace obviously set a precedent. With the right vision and leadership it can remain a high-profile site. If it continues to cater to the goofball mentality then it will likely lose out to sites that cater to niche audiences. I don’t think the ads on MySpace are appropriate, especially for teens which are its target audience. As additional sites appear with more appropriate advertising then MySpace will begin losing its traffic. To say the MySpace is creating these seeds is debatable. The marketplace is obviously finding ways to exploit the traffic that MySpace produces.

  11. Sam Moorcroft, ChristianCafe.com Says:

    Marcus, interesting comment, “Now if I ran slide.com I say, great we have millions of users coming from myspace but if myspace dies so do we. ”

    You are always preaching about the demise of paid dating sites like Match.com and others. Shouldn’t you be following your own advice?;-)

  12. myspacebackgrounds Says:

    Yeah, I think Myspace is doomed. They’re losing US market share but they may have some life left outside the US.

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