MySpace Is Branching Out Into Web StartUp Field

MySpace is about to gain back some of its cutting edge status by launching a separate venture that will act as a nurturing incubator for web start ups. Still in development under the guiding hands of MySpace CEO Chris DeWolfe, the start up will offer a place for new web ventures to get their sea legs.

This new venture will be a spin off from MySpace. Reports say the name tentatively chosen is SlingShot Labs. DeWolfe said that even though SlingShot Labs would receive funding from Murdoch's News Corporation it will operate separately from MySpace. It will reportedly nurture as many as five web companies at any one time.

MySpace has jealously guarded its own widget sets in the past, blocking or banning outright any widget that could infringe on its own ability to make money off of its users. Some of these bans were short, lasting mere hours (YouTube) and some continue to this day (iMeem, Stickam and others come to mind). In some cases, MySpace bought the competing widget and integrated it into its platform (PhotoBucket).

In recent months the once-innovative company has been accused of being stodgy and close minded. It hasn't lost its existing user base (still millions strong), but it has faced stiff competition from more progressive rivals like FaceBook in getting new users and holding on to market share. FaceBook and other platforms encourage third party applications and widgets. Their user base loves the interactivity that this brings to the site experience.

It is thought that being accused of lack of innovation and the rate rivals were gaining market share was instrumental in MySpace's introduction of SpringWidgets, a widget engine, and in joining OpenSocial (not yet available to their users). Myspace also launched a developer platform in 2007, another move that indicated a new desire to be more open to outside applications.

Did these events lay the groundwork for the new spin off? Possibly. It seems Myspace has been easing into this arena one baby step at a time. Some bloggers have compared SlingShot Labs to FaceBook's grant program fbFund, but I'm not sure I agree. The MySpace program as laid out by Chris DeWolfe doesn't sound like a grant program to me, but more of a directed funding arena. If I'm understanding it correctly, MySpace will get to give the start ups advice and direction in a way fbFund does not, in keeping with their current TOS. Not to mention the fact that SlingShot isn't even active yet, while fbFund has been around for months.

Edited to remove MOG from the banned widget list, as it seems it is allowed now.