MySpace relaunch to combat Facebook

Rupert Murdoch's social networking website MySpace is planning a Spring relaunch to try to win back users from rival Facebook and reposition itself in the rapidly changing social media market.

MySpace, bought by Mr Murdoch's media group News Corp in 2005 for $US580 million, has endured a tumultuous two and a half years after losing ground to Facebook and turnover in its executive ranks.

Co-president Mike Jones agrees there has a been a period of pressure but dismisses suggestions Mr Murdoch doesn't have a tight grip on his internet assets.

The ageing tycoon was recently fully briefed on the MySpace relaunch plans and he maintains an active interest in the business.

"We spent time with him, he was in the offices last week, we walked him through our full 2010/2011 product road map, including visuals, and it wasn't a light walk-through," Mr Jones told AAP in Sydney on Thursday.

MySpace still boasts more than 100 million worldwide users and is listed among the larger sites in the US, according to the latest figures.

But it is no longer seen as quite the global heavyweight it once was.

Mr Jones, who became MySpace co-president with Jason Hirschhorn (Hirschhorn) in February, hopes the relaunch, scheduled for the southern hemisphere spring, will bring back users.

"I know that when that relaunch comes I've got a great product, I've got a global audience that at one point used MySpace ... I think I can make the old new again for them," he said.

Its move comes as AOL announced on Wednesday it was no longer prepared to invest in its social networking site, Bebo, and will close or sell it.

The revamped MySpace will have an even greater new focus on music and games and aim to break into new markets, such as Africa.

China is also a potential massive market, despite the trouble Google is currently having there, MySpace's international managing director Rebekah Horne said.

MySpace has not suffered censorship issues in China in the same way Google alleges it has - but there have been some "interesting anomalies", Ms Horne added.

Down the track there is likely to be further room for MySpace to leverage News Corp's film and television division, 20th Century Fox.

"There's never been a time where (Fox) hasn't given us what we've asked for," Mr Jones said.

"But I also feel there's certain asks that we're not ready to make from a product perspective.

"I'm sure we could go right now and get a whole bunch of great exclusive content but I don't think we're quite ready."

Mr Jones also said he didn't see MySpace or Facebook users ever having to pay for site access, despite plans by News Corp to start charging for its online newspaper content.

But he does believe that if charging for web newspaper access was successful other internet sites would begin charging.