It was also becoming clear that, unlike many other internet sensations, MySpace could earn its keep. Within 15 months of the acquisition, revenues had leapt from about $1m a month to $50m a month: half came from advertising sold by the new sales team that News Corp had installed, the rest from the Google deal. As advertisers rushed to target the site’s rapidly expanding audience, offices were opened in Japan, South Korea, China, while a free music service was launched at considerable expense.
But by the beginning of 2008, things began to sour. Facebook, a rival social network that was simpler and easier to use, was gaining momentum and starting to grow more quickly than MySpace. Murdoch confidently told the world that MySpace would make $1bn in advertising revenues in 2008 – but the company missed its target. Users began to desert the site, which had become cluttered with unappealing ads for teeth straightening and weight-loss products. News Corp executives could hardly hide their displeasure, and in April this year, DeWolfe left, closely followed by most of his senior management team.