Following Google’s $1.65 billion deal to purchase YouTube this Monday, News Corp’s MySpace.com has announced interest in expanding its own relationship with Google, and plans to meet with the search engine giant later this week to discuss options.
Clearly threatened by the competitive edge the joined forces of Google and YouTube present, News Corp is scrambling to find ways to work with the two entities — not against them.
Because YouTube is MySpace’s top competitor, any deal that bolsters Google’s power in the Internet-video world poses a direct threat to MySpace. Both MySpace and YouTube allow users the freedom to post their own content and provide individuals with the luxury of personal expression and design.
MySpace users are able to provide links in their profiles to videos available on YouTube. Approximately 20% of YouTube’s audience comes from MySpace users who link to clips on the site. Because the two sites work so well together, MySpace had previously expressed interest in purchasing YouTube, but the company was told it was not for sale. News Corp was subsequently shut out of the sale negotiations between Google and YouTube. After the sale was finalized, it’s no surprise that MySpace executives were rumored to have considered cutting off all profile links to YouTube.
Although the possibilities for growing the relationship between the search engine mogul and the number one social networking site are virtually endless, many say that video advertising will be the next possibility MySpace chooses to explore with Google. One option would be to expand an ad agreement previously made between the two companies to include video ads on the Internet.
Some are also asking if MySpace will now build a YouTube competitor site. Given that Internet advertising rates are sometimes higher than those for broadcast TV, YouTube (and any site of its kind) stands to profit wildly from the coming Web-video advertising boom.
The sale of YouTube to Google is further proof that competition in the world of searching and sharing is heating up. In recent months, Yahoo reportedly offered $1 billion for The Facebook, the second most popular networking site in America. However, until that happens, users can delight in the birth of the video search engine king- the new GoogTube.