"MySpace is a speck of a business. It has 140 employees; revenues in the second quarter came to $7 million. But its importance lies in its growth rate�it's been adding 125,000 users a month�and in the amount of money it spends to generate content, which is very close to zero. Content generation is the job of the teenagers, who spend an average of one hour and 40 minutes a month on the site, writing blogs, listening to music, and viewing one another's photos. MySpace users are uploading photos at the rate of 1.7 million per day. (MySpace 'flaggers,' meanwhile, manually view uploaded photos and delete any that violate the company's no-nudity rule.) Another source of free content: Bigtime bands like REM and Nine Inch Nails�as well as about 500,000 not-so-big acts�use the site to premiere new music, allowing free listening ahead of an album release. 'I told the brass at News Corp., 'You guys spend billions creating content,'' says Richard Rosenblatt, CEO of Intermix, which incubated MySpace as a separate company. 'We spend nothing. What is better than selling ads against content that other people are creating?' "
Wednesday, October 19, 2005
Technology - Remaking Murdoch's Colossus - FORTUNE - Page 3
Good Fortune article.
"MySpace is a speck of a business. It has 140 employees; revenues in the second quarter came to $7 million. But its importance lies in its growth rate�it's been adding 125,000 users a month�and in the amount of money it spends to generate content, which is very close to zero. Content generation is the job of the teenagers, who spend an average of one hour and 40 minutes a month on the site, writing blogs, listening to music, and viewing one another's photos. MySpace users are uploading photos at the rate of 1.7 million per day. (MySpace 'flaggers,' meanwhile, manually view uploaded photos and delete any that violate the company's no-nudity rule.) Another source of free content: Bigtime bands like REM and Nine Inch Nails�as well as about 500,000 not-so-big acts�use the site to premiere new music, allowing free listening ahead of an album release. 'I told the brass at News Corp., 'You guys spend billions creating content,'' says Richard Rosenblatt, CEO of Intermix, which incubated MySpace as a separate company. 'We spend nothing. What is better than selling ads against content that other people are creating?' "
"MySpace is a speck of a business. It has 140 employees; revenues in the second quarter came to $7 million. But its importance lies in its growth rate�it's been adding 125,000 users a month�and in the amount of money it spends to generate content, which is very close to zero. Content generation is the job of the teenagers, who spend an average of one hour and 40 minutes a month on the site, writing blogs, listening to music, and viewing one another's photos. MySpace users are uploading photos at the rate of 1.7 million per day. (MySpace 'flaggers,' meanwhile, manually view uploaded photos and delete any that violate the company's no-nudity rule.) Another source of free content: Bigtime bands like REM and Nine Inch Nails�as well as about 500,000 not-so-big acts�use the site to premiere new music, allowing free listening ahead of an album release. 'I told the brass at News Corp., 'You guys spend billions creating content,'' says Richard Rosenblatt, CEO of Intermix, which incubated MySpace as a separate company. 'We spend nothing. What is better than selling ads against content that other people are creating?' "
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