MySpace Is a Natural Monopoly (?)

Here is the original link to this article from 2007

https://www.technewsworld.com/story/myspace-is-a-natural-monopoly-55185.html

But it no longer works. Even just https://www.technewsworld.com/ is currently not working.

A natural monopoly has falling average cost. The more customers or users, the lower the average cost. Like a power company. They have large initial fixed costs (the power plant and wires strung all around a city). As they get more customers, those costs get spread out more and more. The cost per customer falls. If a new firm tried to break in, their average cost would be very in the beginning since they will have few customers. That gives the existing firm a huge advantage. Then we might be stuck with just one firm which raises the possible need for regulation.

This site does have an excerpt from the 2007 Myspace article: https://www.verysocialnetwork.com/vsn/2007/01/myspace-is-a-na.html.

"TECH NEWS WORLD -- Jan 17 -- Social networks require a higher level of "investment" from users. Alternating between multiple social networking sites entails a greater cost than switching between instant messaging programs.  MySpace is the largest social network and its value grows as the number of users increases. It also grows as the amount of information it holds increases.  Alternating between multiple social networking sites entails a greater cost than switching between instant messaging programs. FULL ARTICLE @ LINUX INSIDER

Mark Brooks: Users will have MySpace profiles but will also have profiles on other social networks that have focused functionality that appeals to particular needs i.e. OurStory.com for cataloging their past and sharing ti with friends. They will also join networks that are clublike.  i.e. aSmallWorld.net."

Some information about the author: "Mark Brooks earned his B.S. Engineering Management from the University of Hertfordshire (near London)" & [his] "expertise in the industry has made him a regular keynote speaker at conferences around the world and a highly sought after consultant to internet dating and social networking companies."

This article from 2007 by Victor Keegan in The Guardian is still active: Will MySpace ever lose its monopoly?

The point is that sometimes firms that have seemingly unlimited power or control fall away due to competition that we did not see coming at the time.

See also The Rise and Fall of Myspace: Once a booming social network with millions of dedicated users, Myspace has recently experienced some hard times by Nicholas Jackson and Alexis C. Madrigal in The Atlantic from 2011.

Another example is Nokia. They lost market share very quickly.

See also Global market share held by Nokia smartphones from 1st quarter 2007 to 2nd quarter 2013. Their market share fell from about 50% in 2007 to about 3% in 2013 (from Statista).