Google's YouTube acquisition no threat: News Corp.

News Corp's video service 'second only to YouTube'

Google's recent acquisition of YouTube is not a threat to News Corp.'s own efforts to offer user-generated video on the popular MySpace Portal, a top News Corp. executive said Thursday.

"I don't think that has any impact on our relationship with Google," said Peter Chernin, the president and chief executive officer of News Corp., speaking during a conference call with reporters and analysts.

News Corp. views user-generated video, a term for video that users post online for others to watch, as a way to bring more visitors to MySpace, Chernin said. "We are the No. 2 user-generated video site on the web, second only to YouTube," he said.

News Corp. is counting on a boost in revenue from advertisements created by the influx of visitors and additional page views that video brings to MySpace. While that means competition with YouTube, Chernin sees no threat to the advertising and search partnership that now exists between Google and News Corp.

"We continue to have a very good relationship," he said.

In August, Google won a deal to become the exclusive provider of search capabilities and search-related advertising to MySpace. Under the terms of that deal, Google must pay at least US$900 million to Fox Interactive Media -- the News Corp. subsidiary that operates MySpace -- between the beginning of 2007 and the middle of 2010.

As part of that agreement, MySpace this week began offering search capabilities based on Google's advertising, Chernin said.

While News Corp. and Google will compete in user-generated content, YouTube is a potential distribution platform for News Corp.'s own video content, such as television shows and sports coverage, Chernin said. "It will represent a very large distribution platform, which should provide good opportunities for us to monetize our copyright content," he said.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sumner Lemon

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?