MySpace plans fightback against Facebook

Photo / Bay of Plenty Times

SYDNEY - Rupert Murdoch's social networking website MySpace is planning a relaunch to try to win back users from Facebook and reposition itself in the rapidly changing social media market.

MySpace, bought by Murdoch's News Corp in 2005 for US$580 million ($820 million), has endured a tumultuous time after losing ground to Facebook and turnover in its executive ranks.

Co-president Mike Jones agrees there has been pressure but dismisses suggestions Murdoch does not have a tight grip on his internet assets.

The ageing tycoon has been fully briefed on the MySpace relaunch plans and he maintains an active interest in the business.

MySpace still boasts more than 100 million worldwide users and is listed among the larger sites in the US, according to the latest figures.

But it is no longer seen as quite the global heavyweight it once was.

Jones, who became MySpace co-president with Jason Hirschhorn in February, hopes the relaunch, scheduled for the Southern Hemisphere spring, will bring back users.

"I know that when that relaunch comes I've got a great product, I've got a global audience that at one point used MySpace ... I think I can make the old new again for them," he said.

The move comes as AOL announced yesterday it was no longer prepared to invest in its social networking site, Bebo, and will close or sell it.

The revamped MySpace will have an even greater focus on music and games and aim to break into new markets, such as Africa.

China is also a potential massive market, MySpace's international managing director, Rebekah Horne, said.

Down the track there is likely to be further room for MySpace to leverage News Corp's film and television division, 20th Century Fox.

"There's never been a time where [Fox] hasn't given us what we've asked for," Jones said.

He also said he did not see MySpace or Facebook users ever having to pay for site access despite plans by News Corp to start charging for its online newspaper content.

But he does believe that if charging for web newspaper access is successful, other internet sites will begin charging.

- AAP