Since NewCorp lost out on its bid to buy YouTube its trying to get in on the action. NewCorp is meeting with Google Ad sales this week to discuss new ways to work together to possibly expand the recent ad deal that Google signed with MySpace, NewCorp's recent acquistion, to include video advertising.
The deal between Google and YouTube is intially a major threat to MySpace as they are both direct competitors among sites that allow users to post their own content. However many users use the sites jointly linking YouTube pages to their MySpace pages.
Initial reaction to the deal at NewCorp was upsetting and execs went as far to discuss cutting off MySpace links to YouTube after being rebuffed by YouTube when trying to participate in the bidding process.
Overall News Corp recognizes the need to take advanatege of the video advertising boom. It haas been focusing on vamping up its video technology on the MySpace page on even thought about building a competitor to YouTube.
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