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Which is exactly what MySpace should do. Rather than trying to reinvent itself to compete better with Facebook, they should do the exact opposite. They should try to optimize whatever monetization opportunities it has. Cut costs to the bone. Maximize revenue per user. Think purely in terms of business. Squeeze every nickel out of it that they possibly can, knowing its going to die a long, slow death. Meanwhile, they have the opportunity to take that money and invest it where they think some young company is preparing to become Google/Facebook/Whoever’s black swan. They can invest alone, or along side others. It doesnt matter. What does matter is recognizing that they have a better chance of beating Facebook by investing in a company they think can pre empt Facebook than by trying to reconfigure MySpace to be that company.
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I think that social pressures force many businesses like Myspace to not go the cash cow route. I totally agree with Mark here, run Myspace with 20-30 people, have it make $100million+ to the bottom line annually and let it slowly die. Then reinvest those earnings into things with a better chance to succeed. At this point it is much easier to create something new then reinvent Myspace.
