Looks like the now infamous Internet "Mea Culpa" Speech was only Rupert Murdoch's warm up act. Earlier in the week, Fox revealed its plans for a new interactive division to be headed up by former online sports impresario Ross Levinsohn. So how does Newscorp planned acquisition of Intermix Media, which owns the community network MySpace.com fit in its broader portal ambitions?
Although the media coverage to date has focused heavily on the traffic
Fox will acquire as a result of the transaction - the key asset that
MySpace brings to its new parent is community connections rather than
raw eyeballs. Online community is a fickle phenemenon - difficult to nurture
and often precarious to transplant.
Fox has a wealth of entertainment,
sports and news related content brands to exploit online. But if MSN and Yahoo are any indication - creating a loyal online
audience also requires a solid base of application and community based
tools. The messaging and email market are well and truly saturated.
With Friendster in decline, Yahoo's 360 service in slow uptake and
Google's Orkut floundering in relative obscurity - a strong social networking acquisition appears both logical and timely.
However integrating a popular community network like MySpace with the
diverse collection of Fox content brands, and the numerous other online
acquisitions that are bound to follow this one - will be no easy task.
The great strength of Yahoo has been the seamless integration of its
user registration and predicative personalisation tools. In no small
way, this approach to individual user preferences and their interconnected
relationships with other web users has been the bedrock of Yahoo's
successful foray into new fields such as streaming and entertainment related content.
Time will tell if the Fox will be as quick.






From FIM President "Look, the internet business is in a different place than it was five years ago. I've heard plenty of arguments that's say had Go just stayed the course, they might be in a different place today but that's not where we focused on. The business is far more mature today in that broadband is real, wireless is real. On any given day I have millions of people visiting FoxSports.com and if you added up all our sites we have millions of people visiting our collection of sites on a daily basis. That wasn't the case five years ago, six years ago. It is the case today. We weren't doing seven-figure ad deals with clients six years ago and we are doing them today. There weren't north of 100 million people online six years ago, there are today. It's just the evolution of the business. The bubble was symptomatic of any new industry; it in some ways had to happen ... it only makes brands like ours stronger because you can't recreate what a News Corp. or a Viacom or a NBC Universal has spent 25-50 years building, You can't replicate that over night. You can't say I'm going to be a dominant content player, which is a very expensive proposition, and snap your fingers and have it happen... One of the things Mr. Murdoch said to me was this is not about next quarter, this is about where is our company in 10 years. If we can set it up so that we're in the right place, I think all the other things will take care of themselves....It doesn't become an issue because we're both marching down the same path and this is what Mr. Murdoch and Peter want. We're smart enough to know we're not going to screw that up over territorial things. ... One of the things Mr. Murdoch has said to me is you shouldn't worry about any of this because it all goes to the same place."
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