What happened to MySpace? During its peak back in 2005, MySpace was bought for $580 million. Last year, it was sold for only $35 million to Specific Media which is only 6% of its worth in its prime. MySpace could have easily been what Facebook is today had it not been for their two critical mistakes: flooding of advertisements and a constantly changing interface. It became submerged with ads and company profiles that wanted to add you as a friend. User profiles had advertisements covering it and it got to the point where I didn’t want to wait for the page to be open. MySpace frequently changed their interface much to their users’ dismay. They also gave users the ability to customize their profile using HTML which made pages buggy or take much longer to load. Slowly users drifted to the user friendly interface with very little advertisement that is Facebook. MySpace could have easily retained their users by switching to Facebook’s approach.
Why MySpace Failed
Here's an explanation from Facebook's former president of why MySpace failed: Click here