14 DAY TRIAL // MySpace may be the current leader in revenue among social networks but it's not going to last if the existing trend continues. With a lucrative Google deal set to expire next year, and a new one most likely not in the works, at least not on the same terms, a large part of the social network's revenue will be gone. And with declining or stagnating user numbers and page views it will be hard for the company to get some new revenue streams coming. So a new partnership with Fox International Channels, which will handle international advertising, marketing and other local collaborative activities, couldn't have come at a better time.
“The new partnership with FIC allows MySpace to reduce operational costs and better leverage our local knowledge and relationships,” Owen Van Natta, MySpace chief executive officer, said. “This initiative, which is the first result of our international operational review, will allow MySpace to continue serving the needs of our users, partners and advertisers across some of our fastest growing territories.”
It is important to note that the media giant News Corp. owns both parties so this will be a partnership amongst siblings and the main reason behind it is cost cutting. MySpace has recently lost 30 percent of its US work force and a further 60 percent of its international employees. Most foreign offices are also in the process of being closed with just the ones in London, Berlin and Sydney guaranteed to survive, although local sites in Brazil, Argentina, Spain, Italy, Poland, Mexico, and Turkey will apparently remain active even with the new partnership. The layoffs, coupled with diminished income and popularity, made it necessary for the company to start using Fox offices from around the world to mange local advertising contracts, with a dedicated MySpace team making even less sense as the social network isn't very popular outside of the US.
“We’re delighted to work with MySpace’s international operations across Europe and Latin America. We look forward to jointly leveraging our Internet and advertising expertise to create meaningful experiences for MySpace’s international audience and its many global advertisers and affiliates,” said Hernan Lopez, chief operating officer, FIC.