There is a very interesting post by Pete Cashmore over at Mashable.com where he analyzes the traffic stats of major sites during Myspace’s “power outage” on July 22nd and 23rd.
Hitwise data shows that rival Facebook’s traffic edged upward over July (but still has a long ways to go before meeting MySpace.) Other sites, included Google saw traffic spikes during Myspace’s down time.
Downtimes and dissatisfied users open up market opportunities for internet property owners large and small. I recently told someone you can compete in any market. If your competition charges money, give it away for free. If they give it away for free, charge money for a superior product. If your competition’s site is slow and down often (like Myspace) use a faster server and better software.