The social network MySpace has reported that its three top executives are quitting the company to start their own company. The executives that are leaving the social network include Chief Operating Officer - Amit Kapur, Senior vice president of engineering - Jim Benedetto, and Senior vice president of product strategy - Steve Pearman.
According to MySpace, the COO Amit Kapur, who played pivotal role in the launch of the MySpace Music joint venture with the major labels, along with Jim Benedetto and Steve Pearman, will leave the company before the fall.
In a statement, MySpace said, "We're incredibly excited to see what this team creates together and wish them the best of luck as they transition from helping run a company to building a new one. Amit, Jim, and Steve depart as great friends of MySpace and of our executive team. They will remain on board for the next few weeks to ensure a smooth transition company-wide."
MySpace reported that the company's founding team of Chief Executive Chris DeWolfe and Tom Anderson will continue to be part of the company.
Amit, Jim, and Steve were not immediately available for comments. Presently, there are no details available on the new company that these three are intending to start. Three top executives of MySpace are leaving at the time when the company is facing huge pressure from rival Facebook, which is surging in United States, where MySpace is leader. Recently, the Fox Interactive Media group, which includes MySpace, reported an operating loss of $38 million in the quarter that ended Dec. 31.
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Myspace Needs A Boost Of Innovation
These are painful times and nobody likes to hear that a company is experiencing difficulties, but I think that Myspace needs to seriously reconsider its direction. Myspace changed the world when it hit the scene, but like Yahoo to Google, somewhere along the way it lost its innovation. Everyone I know at one time had both a Myspace and Facebook page, but now they only seem to be using their Facebook accounts. To use a television analogy, I have always thought that Myspace was like network television and Facebook like PBS/cable. I watch both, and they each serve a different purpose. However, like much of network television, Myspace has lost sight of why their users initially joined their site. If Myspace was being guided in the right direction, there would be no issues with Facebook because the two social networks serve different purposes and aren’t mutually exclusive. I still believe that as a mass market delivery network, Myspace has great potential.
For example, as someone that is knowledgeable in both online and music, I believe that Myspace Music has been a total squandering of an opportunity with enormous potential. Myspace Music’s opportunity is not in selling downloads yet because they haven’t established themselves as a music/entertainment brand, contrary to what they believe. Myspace Music joined a crowded field and has done nothing of significance to differentiate itself from the pack in the minds of their enormous user base. Myspace’s “if we build it they will come” mentality with regard to Myspace Music is sorely mistaken. Myspace users have always been able to stream music so that’s not a big deal to them. And certainly putting a button that allows users to buy music on the player is not enough to call it a major music initiative. When Myspace made the announcement about Myspace Music, I was so excited to see what revolutionary new things they would unveil, but when I actually saw Myspace Music, it was like, “Oh, that’s it?” I think many of their users felt (and still feel) the same way. If Myspace Music had the benefit of being a division of the company that created the greatest music device in the history of mankind like iTunes, then they could afford to be lackadaisical about brand building, but they don’t have that luxury.
I have always believed that Myspace Music’s real utility is in being a one-stop music community that connects its users with the numerous bands on their social network in a meaningful way. Currently, they aren’t doing that at all, which is why they also haven’t been able to connect their advertisers with their users in a way that is relevant to the users. For example, here are just a few completely obvious examples of how they could really be of value to their users as a one-stop music community. First, add online radio streams as iTunes has done. Myspace should have advertising supported radio streams by genre that give information about the artist that is playing and that links to the artist’s Myspace profile on the pop-up Flash player. In addition to having streams with already established artists (to pull users in), they should also have streams with the best new major label bands, indie bands, and great unsigned bands on Myspace to actually make it EASY for Joe Myspace user to hear their favorite artists and discover new music (essentially becoming a global Clear Channel Radio). Secondly, add a weekly in-studio live performance show. Myspace is owned by Fox. Fox has major soundstages in Los Angeles and I’m sure that one of the soundstages on the Fox lot is empty. Myspace Music should tape an intimate live weekly performance show with the biggest artists on Myspace Music (reminiscent of VH-1’s Storytellers). It should be the place where established bands come to play live to debut songs from upcoming releases (globally), or in Bruce Springsteen’s case, come to remind some of Myspace’s younger users why he still kicks butt, and a place where good up and coming Myspace bands have a place to break (again, offering sponsorship positions throughout the program to connect advertisers with Myspace users in a relevant way). Lastly, I can’t even go to Myspace Music and get my music news. What’s up with that? They need to add a music news aggregator. Myspace Music has a billion opportunities, they just need to use them.
I think Myspace still has a world of potential so it will be interesting to see what the management changes will bring.