Tomahawk, WI 10/23/2013 (BasicsMedia) – Once upon a time, MySpace was the most dominant social media site in the world.  However, it never enjoyed this position of dominance for long, since Facebook Inc (NASDAQ:FB) overtook it. However, people are seeing a number of similarities between the two giants. FB overtook MySpace in terms of numbers and popularity back in 2008. FB used to be very popular with college students in the earlier days compared to MySpace, which in its heyday, was the preferred choice among teenagers and high school students. The situation has now changed considerably.

FB is a Much Better Company than MySpace Was

FB does better than MySpace on many fronts, especially in terms of finances. FB’s users mostly earn more income in comparison to MySpace users. Based on this fact, it is safer to say that MySpace users belong a low-income group compared to Facebook users. Consequently, FB users bring more revenue to the company compared to users frequenting MySpace. Perhaps the most important area in which the two companies are worlds apart is where FB boasts of more than a billion users worldwide, compared to the less than 35 million active users in MySpace.

FB users are likely to be found using other professional social media sites such as LinkedIn. This is not the same case with MySpace users, who prefer to stick to less professional networking sites. MySpace has changed its focus from providing general social media services like other sites such as Facebook do, and is now firmly involved in the provision of what it refers to as social entertainment. MySpace currently focuses on the 13 to 35 age group, with its bias towards the sharing of music and video content. It had to change in order to survive FB’s onslaught.

Facebook Enjoys Stable Leadership

MySpace was forced to undergo a change in ownership in 2011, where its former owner, News Corp, sold the company to Specific Media, a digital ad company. Facebook, on the other hand, is still under the ownership of the same people who founded it. New social media sites such as Twitter and LinkedIn have overtaken MySpace in terms of popularity. I believe that FB needs to work extra hard to ensure it does not follow the same path that MySpace followed and led to its loss in value and popularity. FB’s competition with Google Inc may help it survive.

FB is not immune to the political and economic situations of the day. The ongoing partial U.S government shutdown has had a negative effect on FB stock, in much the same way as it has one other social media sites such as Yelp and LinkedIn. The partial U.S government shutdown has affected almost every single industry. To its credit, this has not stopped FB from making new acquisitions in an effort aimed at helping it regain any market it might have lost, but more importantly, to increase its potential for attracting more revenue and enjoying sustained profits.

MySpace had to change when Facebook entered the social media network scene, although investors and analysts believe this came too late. FB cannot afford to wait until it has no choice but to change. It needs to institute measures and put them in place right away to evolve with the market or industry.

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