MySpace Shoots for $1 Billion This Year as they Ponder Music Structure

-MySpace Logo-MySpace may not spin off their Music product into it’s own entity as initially expected, according to Staci Kramer. Why have they decided not to take the joint-venture route as Hulu has done? It’s pretty simple: they see no point. The biggest challenge is trying to separate MySpace Music from MySpace the social network especially since it has been so tightly integrated since early on.

One source at MySpace told PaidContent, “We’re pretty happy with the way things have been working to get us to this launch; the idea we have to do things completely separately doesn’t seem to be as relevant.” Sounds like they are pretty happy as it is! Also of interest is confirmation that MySpace is on target to reach $1 billion in revenue this year. These numbers have been passed on for some time and Matt Marshall has appeared to confirm these estimates.

In comparison, Facebook has projected that they will earn around $300 million in revenue this year. You could argue that MySpace feels more pressure to monetize their site as the social network is part of a large, publicly traded company. Just two months ago we wrote that MySpace revenue should hit $650 million which was based on numbers provided by Peter Kafka. Since then it looks like projections have risen closer to $1 billion.

This is an impressive number for a social network and it highlights the existing revenue potential. While the industry searches for a breakthrough monetization model, MySpace has already been able to produce substantial numbers. One has to wonder if these new revenue projections are based on an increase produced by MySpace Music.

The service already has a built in advertising model and given that they had over 1 billion songs served in the first month, there is a good chance they were able to increase time spent on the site. Ultimately we’ll have to wait for their fourth quarter results to see if the $1 billion projection is reached but these numbers should be relatively encouraging for other social networks.