The new chief executive of MySpace has told the Financial Times that the company is no longer interested in competing with Facebook, in effect conceding defeat in the race to become the largest online social network.

Owen Van Natta, a former Facebook executive who replaced Chris DeWolfe as chief executive of MySpace six months ago, said the company instead aimed to become an online hub for music and entertainment. “Facebook is not our competition,” he said. “We’re very focused on a different space.”

The change in direction at MySpace comes as the NewsCorp-owned site has fallen behind Facebook. In September, Facebook represented more than 58 per cent of US social network traffic, according to Hitwise, the online research firm. MySpace, once the largest social network, saw its share slip from 66 per cent a year ago to 30 per cent.

However, MySpace continues to be one of the most visited sites on the web with more than 100m unique users worldwide. Facebook, by contrast, has more than 300m users.

Mr Van Natta wants to capitalise on MySpace’s status as a leading online music destination and used a presentation at the Web 2.0 conference in San Francisco on Wednesday to unveil new features that enhance its music credentials.

The company has struck a deal with Apple’s iTunes store to allow its users to buy tracks without having to leave the MySpace site. It has integrated iLike, a music application company, and launched Dashboard, an interactive tool for bands and musicians, as well as compiling the largest catalogue of music videos on the web.  Click here for more