From TechCrunch:

Everyone knows MySpace traffic is going the wrong way, but the accelerating decline (and big financial losses) is a serious problem. Parent company News Corp. is in the middle of a sale process, and everyone from venture firms to private equity firms to operating companies are taking a look. "It's like slowing down at the scene of an accident," says one person with knowledge of the discussions, "everyone wants to take a look at how bad things have become."

The problem with negative growth is that predictive modeling has to be thrown out the window. And an accelerating decline in audience suggests that MySpace won't be stabilizing soon. Right now, people are fleeing as fast as they can from the site.

Amazing.

The story reports that their audience dropped 14 percent in a month.

It’s soon to be the next Friendster or Tribe.net.

I had a conversation with a UX designer that worked there up until the last layoff. What it came down to is when you don’t understand the audience and try to design to it, you’re going to fail (most of the people involved bailed before the layoff, knowing what the writing on the wall was).

Other conversations with people who knew the audience said how much they hated the redesigns, but there was no way to voice for users to voice their opinion effectively.

A lot of people bailed during redesign try number one, and with this second one, they removed one of the key features that was keeping people around: customizable profiles. The demographics of that audience sucked from an advertising standpoint, but if you’re McDonalds, you don’t change the menu so everything’s over $50 when people are to Combo Meals.

Say what you want about the previous management (Tom Anderson and Chris DeWolfe), but at least they understood the audience.