MySpace continues to drop vs. Facebook growth

Posted by on May 20, 2009 in Strategy

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MySpace continues to drop in its war for supremacy with Facebook. Comscore results for March show that MySpace had 70 million monthly uniques in the U.S. in March. That’s less than it had a year ago. Meanwhile Facebook has surged to 61 million U.S. users and are adding a few million more every month.

Even worse for MySpace, its worldwide monthly page views have declined from 47.4 billion a year ago to 38 billion today. The impact is that advertisers will be less willing to spend the big bucks at MySpace. Over at Facebook, monthly page views grew from 44 to 87 billion vs. a year ago. (The numbers are similar in the U.S. with Facebook growing from 13 to 20 billion page views a month and MySpace dropping to 34.8 billion from 41.6 billion).

TechCrunch predicts that MySpace will be unprofitable within a year, decreasing from $800 million last year to less than half a billion within the next.

TechCrunch also reported that Facebook received and turned down a term sheet for a new $200 million venture round of funding that would value the company at $8 billion. Facebook’s last round valuation was $15 billion. The company is also suggesting that revenues will be $550 million in 2009 vs. previous estimates at $400 million and 2008 revenue of $280 million.

Written by Brian Blum

Brian Blum covers Canada and Israel for Classified Intelligence Report, and contributes to our special reports and research projects. With the AIM Group since 2004, he previously held the real estate and automotive beats. He is the president of Blum Interactive Media, specializing in writing and multimedia content development for online, print, video and audio. His clients include newspapers, universities and non-profits. He moved to Israel from the San Francisco Bay Area in 1994 and lives in Jerusalem, where he writes a popular blog about “normal” life in the Holy Land, appropriately titled “This Normal Life.”