How MySpace Conquered the Continent

It was late to the social-networking party in Europe, but the News Corp. site quickly overtook rivals with features designed for, and by, locals

by Mark Scott

A year is an eternity in Web 2.0 time. Just 12 months ago, social-networking site MySpace looked late to the party in Europe, as local alternatives and American rivals such as Facebook, Bebo, and Ringo (MNST) got off to a fast start in the nascent market.

But the News Corp. (NWS) unit was far from giving up. First in Britain, then sweeping across the Continent, MySpace rolled out a series of country-specific sites retooled in different languages and with added features designed to appeal to the locals (see BusinessWeek.com, 9/11/06, "MySpace: No Free Ride in Europe").

The campaign has been remarkably successful. The number of unique visitors to MySpace's European sites has risen more than 72% in the past year, to 26 million per month, according to researcher comScore. Traffic has grown even faster: Europeans viewed 2.5 billion MySpace pages in May (the most recent month for which figures are available), compared with 1.1 billion a year earlier, says market tracker Nielsen//NetRatings.

Growing Pains in China

MySpace is now the clear No. 1 social-networking site in every European country where it has created a local presence. In fact, Nielsen//NetRatings says its "active reach," or the percentage of the population that visits MySpace, is anywhere from 10 to 15 times higher in Spain, France, and Germany than for runner-up Facebook. Only in Britain is the contest closer, with MySpace leading rivals by around two-to-one in terms of reach.

That's something of a contrast to the growing pains MySpace is encountering in China, where a local site rolled out in April is struggling to gain traction (see BusinessWeek.com, 06/26/07, "MySpace's Slow Start in China") The difference likely comes down to how much MySpace has customized its sites in each European country—something critics say it hasn't done enough of yet in China.

"Our focus has not been to import the American model, but to hire people in each country and let them shape MySpace to fit the local culture," says Travis Katz, the company's senior vice-president for international expansion. "We're seeing a flourishing of local activity from local markets, rather than a repetition of things that worked in the U.S."

Hip-Hop Community, Teutonic Style

In fact, some of the innovations cooked up by MySpace teams around Europe have been so popular that they could be imported to the mothership site in the U.S. One is an area called "Boudoir" on MySpace France where designers, fashion writers, and members meet to discuss the latest trends and styles. To add spice, MySpace has enticed big-name celebrities such as Karl Lagerfeld and Kate Moss to join the party. Now, the company plans to bring Boudoir to the U.S. in the hope of tapping into the big pool of fashion advertising there.

Another potential import includes an online street dance community called WhoGotSkillz, started by MySpace Germany. The area features hip-hop music, video, and discussions of cutting-edge choreography. And soon Americans might be able to enjoy an innovation from the British MySpace, an online movie-making contest for first-time directors called MyMovie Mashup. Candidates submitted short films made by mashing up digital material, and MySpace members were given the chance to vote for their favorite. The as-yet-unannounced winner will receive $2 million to make a feature film.