MySpace make $25 million per month on advertising, announced News Corp chairman Rupert Murdoch at the Digital Hollywood conference in New York this week.
“It’s gone faster than we have expected, we have had to put the brakes on. Physically just handling this traffic we’re going to need a lot more hardware, a lot more servers,” said Murdoch. According to him, MySpace is now worth about $150 million. 20% of revenue comes from European and Australian markets.
“Next year we’ll be kicking in with search revenue from Google so together with IGN, we’ll be getting close to a billion dollars of revenue,” he added, referring to MySpace’s advertising deal with Google announced late last year that’s scheduled to continue through 2010.
News Corp bought MySpace’s parent company Intermix in 2005 for about $580 million. Murdoch said he was largely unconcerned about losing the MySpace audience, stating that many users are members of more than one social network. However, he also expressed the importance of staying competitive with other social networks like Facebook and other companies that offer some similar services like Google’s YouTube.