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Monday, November 06, 2006

MySpace’s Sails For Japan

MySpace want to migrate its business model to Japan. It has teamed up with Japanese broadband giant Softbank to launch a service there.

But, Mr. Murdoch and MySpace parent, News Corp, are likely to find out that being early to the market is a big advantage, as is operating on you home turf.

The Japanese already have a large social networking site, Mixi. And, the sites traffic is up five times since August of last year.

Having such a large competitor already in place may make it impossible to gain a foothold in Japan, just as MySpace has been able to largely lock out sites like Facebook and Friendster in the US.

Myspace is doing well in the US, and it may have to settle for that.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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