The one thing I love about the Internet is how it changes almost on a daily basis. The once darling of the Internet, MySpace, appears to be in worse shape than first thought. Though new executives have been brought in to whip things into shape, MySpace could be facing the same problems that have plagued the other once darling of the Internet, Yahoo!

What makes the Internet so different is that there is no brand loyalty by users. When a better or new social networking site appears such as Twitter, we flock on over to the new kid on the block – which leaves the old social networking site stripped of their previous users. In the case of MySpace it is being hit with more than just a mass exodus.

According to an article over at the Silicon Valley Insider, it states the following:

Myth 1: MySpace usage may not be growing, but it’s not shrinking either.

During former CEO Chris DeWolfe’s tenure, MySpace made a lot of noise in public about its 120 milllion or so unique visitors, but the new team on the scene has discovered that “the true [user] engagement numbers are horrendous.”

Myth 2: With its year-old portal advertising strategy, MySpace doesn’t need Google to make money

Google hates the $900 million, 3-year MySpace ad deal it did back in 2006. When it renews the deal, Google will probably only guarantee around $50 million per year. This will cut MySpace’s annual ad revenues in half, from $600 million to $300 million.

Layoffs. New Corp is a cutthroat company. Jon and Owen know they can’t let MySpace lose $100 million to $150 million during their first year and keep their jobs much longer. The easiest and probably smartest way for them to keep that from happening will be to cut MySpace’s 1,500-strong headcount in half.

But will MySpace be able to reinvent itself and get people back? That is a question that some seem to feel may turn out to be ‘no’. If one looks at Yahoo! as an example, that company has not been able to reinvent itself and garner Google fans who have not returned.

What do you think? Can MySpace make a comeback?

Comments welcome.