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From Wikipedia.

History of MySpace

Founding:

Originally founded as a wholly owned subsidiary of InterMix Media, Inc. (previously known as eUniverse, Inc.), MySpace.com was spun into a separate entity in 2003. The person mostly responsible for the advertisement of the site is Tom Anderson.
Within months, the site's popularity exploded and the programmers were hurried to improve the site as much as possible. In early September, many changes were made just so that users could delete things.
On September 25, 2003, MySpace announced the addition of several major features to the site. Included were the first group profiles, the ability to empty the trash in the mailbox, a new look for the bulletin board, a mail indicator live anywhere on the system, unlimited friends, and the option to change an email and turn off reminders. Also, a number of bugs were fixed.

October 2003 brought new features such as leaving comments on people's profile pictures, hiding online status, having the ability to block friend requests, and approve comments before they could be posted. In November of 2003, MySpace added features such as Classifieds, picture ranking, and a way to find users by interest. The "Online Now" status was also added in more areas, and the Mailbox was vastly improved. At this time, users were starting to experiment with HTML, creating more elaborate profiles that attracted interest. Some users offered their help so that new and inexperienced users could also learn to customize their profile.
On December 18, 2003, MySpace introduced their Instant Messenger, for one-on-one IM communication between users. Some MySpacers have created their own IRC chatrooms, and marketed them as unofficial. MySpace added its own Chat Rooms in February of 2004.
To this date, MySpace generates a large amount of revenue through promotional partnerships and sponsorships.


2004

In 2004, musical artists were allowed to create their own profiles and were given the option to post streaming MP3s of their songs to build up bigger fanbases. Some bands even allowed the MP3s to be downloaded. The concept has worked for some, and less so for others.
In early April 2004, new features such as forums, games, Advanced Browse, and a new Journal customization were introduced to the public. The games included the very popular Gold Miner.

. On June 4, 2004, members were given the ability to create brand-new groups so that like-minded people could share a common bond. There are two ways for groups to add members. The moderator of any group can invite members individually, or members can join themselves by either word of mouth or by browsing the 'Groups' section of MySpace. However, some groups have gone under scrutiny by the creators of the site, with some posting offensive photos, which was a direct violation of the site's rules. Attempts are being made everyday to deal with these types of groups, and in the end the hope is that it remains free of offensive material. Other threats that have emerged within groups and the site in general are spammers and trolls, however trolls tend to vandalize the forums with HTML. Fall of 2004 brought another small feature to the blogs. Users could now give "props", later changed to "kudos", to their friends if they were in support of them, to praise them, or just to give respect. Another name change came to the journals; they were then called blogs. Towards the end of 2004, and into 2005, MySpace gave the option to "event invite". Many bands are now using this feature to invite fans to shows, and it can be used for many other purposes. Also at this time, rumors of a possible shutdown of the site were circulating and to resolve this, Tom posted on everyone's Mailbox, saying "MySpace is not shutting down, and it will never shut down".

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