MySpace is no longer that enthralling social network that it once was. After it was acquired by News Corp and failed to maintain its leadership in the segment, the company had to changed direction. MySpace has been proclaimed to be an entertainment hub ever since.
One of the important products in terms of offering this strategic direction to the company was MySpace Music. This was offered by News Corp in collaboration with several major labels and is supported by advertising. However falling revenues have prompted MySpace executives to decide on an alternative course of action.
According to a recent article on CNET, the company may now be contemplating a subscription service that will help the company monetize its music property better. However, the proposal is still in discussion stages and nothing is confirmed as yet. Also, there is a likelihood for MySpace to retain the current offering but provide additional features to subscribers. This is likely to address the falling user base better.
Nevertheless, there is one major issue that needs to be addressed – Should the company be addressing falling users first or should it be revenues? Or both?