When MySpace.com invaded parts of Western Europe last year, it launched customized versions of its site that looked very similar to the original American one. The result: It caught up with and in many cases surpassed local competitors. Now MySpace is embarking on a tougher assignment - moving into countries where Internet conditions require a much more individualized approach.
Having already built local versions for 22 countries and territories outside the U.S., the News Corp.-owned Internet giant starting this month and into next year has plans to launch custom sites in India, Russia, Poland, South Korea and Turkey, according to Travis Katz, managing director of international for MySpace. In each of these countries, Web cultures vary dramatically from that in the U.S. and much of Europe.
In some countries, such as India and parts of Latin America, average Internet speeds are comparatively very slow. So MySpace is developing a less-sophisticated version that probably won't automatically stream video and music while users are surfing the site, although users could launch such features manually.
At the other end of the spectrum, South Korea boasts average Internet speeds many times faster than the U.S. and a much savvier Web culture. Blogging being hugely popular, MySpace is recasting its South Korean version as more of a blogging service, with new tools that make it easier for users to publish and promote their blogs through their profiles.
In other countries, such as Turkey, social networking is a less-familiar concept, requiring MySpace to design on-site tutorials that explain to users how to navigate the site, find profiles for music bands and search for friends. Language differences pose different problems elsewhere: MySpace is contemplating a move into Israel, but the predominant use of Hebrew there would require a site redesign for users who read right to left.
MySpace executives say launching in these countries won't generate much revenue anytime soon. But establishing a presence in countries such as India and Russia is important for the day when Internet conditions improve. "We are placing strategic bets," says Katz. "We are looking at places where there is not a ton of money to be made in the next five or 10 years, but we want to be well-positioned when things get there."
MySpace parent News Corp. has bought Dow Jones & Co., publisher of The Wall Street Journal.
Expanding its global footprint is a top priority for MySpace, fighting intensifying competition from rivals such as Facebook Inc. While MySpace retains a big lead in the U.S., Facebook is growing quickly. And outside the U.S., Facebook has passed MySpace - drawing 55 million unique non-U.S. visitors in October to MySpace's 45 million, according to comScore Inc.
While MySpace has a strong lead over Facebook in Europe, Facebook is the No. 1 social-networking site in a combined category for Africa and the Middle East, according to comScore. And Facebook is likely to become a bigger threat elsewhere: The company also has announced it is translating the site into new languages.
MySpace faces competition from other players elsewhere. In Latin America, where MySpace is a relatively small player, rivals such as Google Inc.'s social-networking site Orkut, and Fotolog and hi5 have loyal followings. Fotolog was recently acquired by French Internet company Hi-Media SA, which intends to market the site aggressively throughout Europe and Latin America. Russia-based Internet company SUP recently paid an undisclosed amount for U.S. blogging and social-networking service LiveJournal, which has nearly 14 million unique monthly visitors world-wide, according to comScore.
MySpace was one of the first U.S. social-networking sites to roll out local versions. Beginning in Europe last year, the company launched customized sites in the United Kingdom, France, Spain, Italy and Germany, since expanding to Austria, Sweden and Denmark, among others.
Posted in Business on Tuesday, December 25, 2007 12:00 am Updated: 2:21 pm.
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