Thursday, March 25, 2010

The MySpace Nuclear Option

Transform MySpace into a dating site.

The signs of MySpace problems go way back but really surfaced when CEO Owen Van Natta resigned. I won’t dwell on the many reasons why MySpace is declining (declining market share, shrinking revenue, loss of key employees, etc), instead I would propose that MySpace reinvent itself and become a dating site. Yes, I said it. A dating site. The demographics are there. 50-50 male/female ratio (at least in U.S.), MySpace is huge in the 18-34 age range (very pop culture), and nearly 40% earn an estimated $30-$60k/year. Plus you have the MySpace freaks, strippers, gamers, nerds, and everything "Twilight". Most importantly, the online dating industry is worth $1.049 Billion. Customers of dating sites spend an average of $239 per year. The average visit per site time is 22 minutes. 22 Minutes! Think advertising revenue as well as pay wall revenue right from the start. International revenue (specifically China) would be HUGE. The MySpace brand (like it or not) is formidable. MySpace should integrate the Twitter API with profiles and dating ads. I could go on and on again, but the main point is that MySpace trigger that nuclear option and become a dating site. Take all that revenue away from eHarmony,, and the adult dating sites. Do this ASAP. The revenues will be terrifyingly enormous. Game over.

See breakdown below.

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