MySpace’s decision to cut two –thirds of its international staff last month has led the social networking giant to an inevitable outsourcing arrangement for the commercial management of its global sites.
News Corp has announced that MySpace will “partner” with stable mate Fox International Channels (FIC) under a multi-territory arrangement covering Brazil, Argentina, Spain, Italy, Poland, Mexico, and Turkey.
FIC currently operates 170 linear and non-linear television services, their respective websites and an international online advertising business. Under the deal, which starts immediately, FIC will manage local advertising, marketing, and promotion across those markets.
Recently-installed MySpace CEO Owen Van Natta said the initiative represented the first result of its global operational review, suggesting further structural changes are on the cards.
The move comes as News Corp CEO Rupert Murdoch revealed to the Wall Street Journal that MySpace needed to be refocused “as an entertainment portal.”
Van Natta said the arrangement would “reduce operational costs and better leverage our local knowledge and relationships.”
Last month MySpace announced that it would cull international staff down from 450 to 150 and shut down four international offices. MySpace did not provide any commentary on how the outsourcing deal would work financially.
FIC chief operating officer Hernan Lopez said, “we look forward to jointly leveraging our internet and advertising expertise to create meaningful experiences for MySpace’s international audience and its many global advertisers and affiliates.”
