The decline in Myspace usage and other like sites is based on a number of factors but the main cause is the audience. Teenage viewers are rarely loyal and tend to jump to the next big thing. This can be a problem when companies are investing millions of dollars in sites that teens are abandoning.

Other reasons for the decline include the networking factor. Kids are beginning to have some negative experiences with these sites and no longer want to participate.

MySpace doesn't seeme to be phased by the numbers. Currently the site is launching software that will keep copyrighted material off the site, which may lead to future deals between the MySpace and the music industry. This announcement follows YouTube's initiative to clean out copyrighted material from their site.

Sites like MySpace may not be the only ones in the networking market. Local connections have left Newspapers open to creating like sites focusing more on local connections. to the A local newspaper, The Bakersfield Californian, has created a website geared towards the same 18-35-year-old audience MySpace targets. Bakotopia.com successfully combines journalism with social networking to create an interactive community site.

Sources: Washington Post, The Wall Street Journal