29 thoughts on “Photobucket vs MySpace, Round Two”

  1. Any ideas who Photobucket was in talks with for getting bought? Maybe, it was MySpace and the price was too high. And this is a negotiating tactic.

  2. Aren’t ecosystems, you know, systems.

    So. part of the dynamic force of myspeace is precisely the ability to add content like video, flash, what-the-ever to your yourspace.

    So, News is turning yourspace into newspace. At what point does this drive myspace users to a new space? Not likely? Orkut, friendster anyone?

  3. Bottom line here: It’s Rupert/FIM/MySpace’s house to do with as they please. Any companies uphappy with the house rules–stated or not–have this wonderful free market option:

    Go build your own house.

  4. Om,

    This is exactly what I would have done if I were on the Fox side. Toll-Free is not capitalism. Win:Win is. If Photobucket is to reap the benefits of the MySpace playground, as you call it, they SHOULD pay for the privelege.

    I wrote this piece called News Corp: Bewildered Pioneer (http://sramanamitra.com/blog/777) earlier. It explores how MySpace’s low monetization rates have left News Corp confused.

    Collecting its tools from parasitic sites like Photobucket and YouTube is precisely what they need to do to change that.

    Great analysis!


  5. If the updated statement is correct, then I see no reason why MySpace shouldn’t have blocked them. MySpace has been actively fighting bulletin spam and people trying to monetize on their site.

    As a MySpace user, I can say that bulletin spam and marketers are a huge problem; I get at least 5 invites each day from marketers that have pages filled with ads. MySpace can’t be discriminatory, so it’s understandable that they would block ALL of these sources (which would include Photobucket, if they were distributing ads).

  6. This is an object lesson in why companies that build widgets used by subscribers on other websites should never be valued as standalone companies.

    One line of code from that 3rd party literally puts these guys out of business. How many times does this have to happen for VCs to take note?

    Go build your widget with the pocket change from friends and family.

  7. Thanks for the update, Om…and I’m sure that Photobucket would of course have no problem letting MySpace/Fox/News Corp run free ads all over their site…

  8. . . . Well, recent actions by some of the large API providers like Google, Amazon, MySpace and Firefox suggest that there may be another, less welcome, exit – having the API rug pulled out from under you or, almost as bad, finding out that your friendly API provider has just introduced a service that competes directly with your own. Neither event is conducive to nailing that big acquisition exit deal. . .

  9. Imagine if Microforst cried foul because application develoeprs were you know, selling software for windows, and making money without them getting their cut?
    Or Google complaining that sites were getting traffic and then making money and not giving GOOG their cut.

    The difference is that Google and MS have built platforms. Myspace is just an app. Platforms have a lot better long term viability than apps.

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