// STARTUP COMPARISON
MySpace vs Vine
MySpace failed in 2011 due to Competition. Vine failed in 2017 due to Competition. Both failed for the same reason — Competition.
| METRIC | 🔥 MySpace | 🔥 Vine |
|---|---|---|
| Sector | Social | Social |
| Country | USA | USA |
| Founded | 2003 | 2012 |
| Died | 2011 | 2017 |
| Raised | Acquired by News Corp $580M | Acquired by Twitter for $30M |
| Peak | $580M acquisition | 200M users |
| Primary Cause | Competition | Competition |
// WHY EACH FAILED
🔥 MySpace
Competition
MySpace was acquired by News Corp for $580M in 2005. Under corporate ownership the product stagnated while Facebook grew. MySpace failed to enforce quality standards — spam, malware, and cluttered profiles drove users away. Facebook overtook MySpace in 2008. News Corp sold it for $35M in 2011.
// LESSON
Social networks are won on product quality and safety, not just audience size. A network that tolerates spam and malware to maximize ad revenue will lose its audience to one that does not.
Social networks are won on product quality and safety, not just audience size. A network that tolerates spam and malware to maximize ad revenue will lose its audience to one that does not.
🔥 Vine
Competition
Vine was acquired by Twitter in 2012 for $30M and never monetized. When Instagram added video in June 2013, top creators migrated for better monetization. Twitter failed to build creator tools. Top creators issued Twitter a list of demands in 2016. Vine shut down in January 2017.
// LESSON
Being first only matters if you are also fastest at monetizing the people who made you first. Creators are suppliers. Suppliers leave for better margins.
Being first only matters if you are also fastest at monetizing the people who made you first. Creators are suppliers. Suppliers leave for better margins.
// EXPLORE FURTHER