We wrote earlier about News Corp’s unease with the Google-YouTube acquisition. For the last few weeks News Corp has been engaging in a one-sided PR war with YouTube - from News Corp. COO Peter Chernin’s recent comments that 60-70% of YouTube traffic comes from MySpace (YouTube says this is incorrect and that MySpace only refers about 5% of total video traffic to YouTube) to Wall Street Journal articles that state News Corp. made a last ditch effort to acquire YouTube before the Google deal closed. Given the importance of video clips (both user generated and copyrighted works), News Corp. is uneasy that their biggest competitor is also their biggest source of revenue on MySpace.
This weekend, a subtle change occurred on MySpace’s homepage and MySpace user pages that makes MySpace Videos much more prominent and accessible. The top-left of the homepage now has 4 videos that entice users to start viewing videos at MySpace. The user profile pages now have a section called Video Space that automatically displays a video if the user has one uploaded. Under the video in the Video Space, viewers have the option of adding the video to their profile, just like users can currently add music from any of the MySpace Music artists to their profile - further individualizing themselves. Viewers also have the option of commenting on the video with text remarks (YouTube allows both text and video comments).
These changes should have a significant effect on the MySpace video usage. Until now, MySpace hasn’t really focused on engaging users to use their video service. Users that didn’t know about MySpace Video will almost certainly see it now. Plus, MySpace Video is so easy now — users upload their videos and the videos automatically appear on their MySpace profile page; whereas with YouTube, you have to upload the video, grab the HTML embed code, and paste that somewhere in your MySpace profile.
MySpace could at anytime block YouTube videos from displaying on MySpace user profiles (just as they blocked javascript and outbound linking in flash widgets) — forcing users to use the MySpace video upload system. Of course that wouldn’t come without risk — a backlash from users could occur, similar to what Facebook recently experienced. Given that MySpace users have invested so much time in creating their profiles and building up their friends lists, the majority of MySpace users would likely end up using MySpace’s video system, rather than jumping ship for an alternative social networking website.
According to recent HitWise metrics based on market share of visits, YouTube is the #1 online video website with 45.46% market share and MySpace.com Videos is #2 with 22.99%. Whereas comScore reports that MySpace is #1 based on video streams and unique users.
Editor’s Note: This post was written by Steve Poland, a guest contributor. Steve is the founder and web strategy consultant for Vested Ventures, a firm specializing in website consulting, internet marketing, and high-end custom web development. We hope to have Steve write for us on a regular basis.
I wonder if it woud have made more sense for Google to let News Corp. purchase YouTube, and then expand their advertising deal with MySpace to include YouTube. That way Google would have gotten the financial benefit without the risk (and there seems to be a lot of risk with that deal–potential for user backlash to hurt the site, potential for legal troubles with copyright owners (which could also cause user backlash if they start removing content), and potential to damage their deal with MySpace).
the reaction of myspace by making video prominent on myspace is just a bit too late. This is a sign of an organization that is inheriting the slowness of its parent firm.. They should’ve done this a long time ago.
Agree with Vince. Google is in a typical (Oracle like) predatory mode. A lot of hardball to witness in the coming weeks! Eventually its the one who has the most numbers (usercount/traffic/links/referrals) who’ll win!
Nice article Steve
Javascript still works on myspace, there’s just little bit of trickery to make it happen.
Great article. Bad part, MySpace preys upon the fact that the majority of their userbase aren’t savvy enough to fight back and complain about things like outbound linking of flash. They are banking on that.
Reads like MySpace is reacting like they are in an old fashion newspaper circulation war. For me to win you have to lose. Too bad MySpace (new) management doesn’t get that we all win when we let the consumer do what they want. Well maybe the internet wins and we all watch a little less network television.
In the last week “Tom” has even posted bulletins about some of his favorite videos.
I still like Google’s move - buying YouTube - for a number of reasons.
However, I’d like to point out one or two things that stick out in my mind as being liabilities for MySpace Video when compared to YouTube.
First, it would seem that MySpace Video is tightly integrated with a user’s MySpace page. (Whereas YouTube can be enbedded on almost any page on the internet.) Consequestly, it would seem less probable for a user to use a MySpace Video on any page other than a MySpace page. As such, if a user where going to embed a video into his or her MySpace page, he or she might be inclined to use MySpace Vidoe. If he or she where going to embed a video into any other page, he or she would be inclined to use YouTube.
Second, if I could place a bet right now, I would wager that MySpace is going to “become a Friendster” within the next 5 year window. (I realize that is pretty bold, but MySpace has a lot of “legacy problems / flaws” that are not easy to change. I won’t go into detailing them all now, but suffice it to say, MySpace was a “primary” answer to a social networking “pain,” FaceBook was a “secondary” answer to a social networking “pain,” and there still exists “tertiary” and additional layers of social networking “pain” that will still be addressed in successive course. When the next social site emerges that addresses “tertiary pain,” that will initiate the noticable end to MySpace.)
Bottom line, MySpace Video may end up thriving as long as page view counts to MySpace remains high, but with the plateauing and rapid decline of MySpace itself, so goes the fortunes of MySpace Video. YouTube, on the other hand, may experience a brief “roadbump,” but with their ability to cater to everyone, their future seems bright.
My 2c.
Maybe you should do your research first before lending us your 2c…
“First, it would seem that MySpace Video is tightly integrated with a user’s MySpace page. (Whereas YouTube can be enbedded on almost any page on the internet.)”
If you would have gone to the MySpace video section you would have noticed that it is just that easy, if not easier to embed and share MySpace videos as it is to share/embed YouTube videos.
Not to mention over 30% of YouTube’s traffic comes from MySpace. A potential loss if MySpace users start to use the up until now not so popular feature at MySpace.
Thomas … I appreciate the constructive criticism.
Perhaps what I was attempting to say (”tightly integrated”) was that users think of MySpace as being a “social site” first and a video site “fifth, sixth, or seventh.” Moreover, users think of YouTube as being a video site “first.”
As you point out, it is very appealing for current MySpace users to use / switch to MySpace Video for their video needs. (This will certainly cannabalize YouTube’s traffic.) However, I’m simply suggesting that (1) it is more likely for a “non MySpace” user to use YouTube for video needs instead of MySpace and (2) I would’nt be surprised if MySpace gets surpassed by someone else in the next 5 years, and hence, the decline of MySpace Video - again my humble opinion.
^Yea but I thought other reports pointed to there being as much traffic from youtube going to myspace, or something like that. I don’t know - it seems nonsensical to try to say who is bigger. They’re both big, for different reasons.
I think MySpace has very solid competitors banking on other things than social networking, other user and technology trends that are coming up now and in the future and I’m still not convinced that “social networking” is it. You never know what unforseen shift could happen.
I think the only mistake they can make is to assume they’ve got it in the bag - businesses based on public activity and popularity are fickle. One day you are Tom Cruise after Top Gun, the next day you’re Tom Cruise on Oprah’s couch and boom, there goes your market share.
I am personally excited to see a more level playing field at their level of the business. It’s going to be fun to see how this plays out.
I am a big fan of what MySpace offers in the way of communication with family, friends, and co-workers. I am not all that excited about some of the other aspects of the site, though. I think that Google could do a lot more with YouTube than MySpace and if Google allows their employees to really brainstorm on this one it will be great.
YouTube has the potential to get bigger in countries that are already using other social networking sites and have no interest in MySpace. All that needs to happen is the emergence of a new “cool” social site, and MySpace users will move.
Hrm… today, “Tom” at MySpace has sent out a special announcement to all users promoting the video feature. The message is below:
Latest Update:
hey everyone - so we’ve got a new video feature. any video on myspace can be added to your profile with one click.
it’s like a song and music mini player on your profile. just click ‘add to my profile’ on the video page, and it’ll put the video on your profile - you don’t have to copy or paste code … of course if you still want to grab the embed code and put the video in a different place, feel free.
click here to try it out with this borat clip!
Oh, oops, forgot about the Bulletin Board post that MySpace “Tom” posted as well. Seems like MySpace is being a little less than subtle in its promotion of its video service.
Bulletin Board Post reads as follows:
From: Tom
Date: Oct 16, 2006 9:39 PM
Subject borat & myspace video
Body: hey folks -
so we’ve got a new video feature. any video on myspace can be added to your profile with one click. it works just like our music player, just click ‘add’ when and it puts the song on your profile.
for videos, just click ‘add to my profile’ on the video page, and it’ll put the video on your profile - you don’t have to copy or paste code … of course if you still want to grab the embed code and put the video in a different place, feel free.
try it out with this borat clip
Borat trailer!
or try it with Borat’s video blog :
Borat talks to MySpace
I got into the whole myspace thing a few months ago and I can’t get enough of it. I found a good example the other day of the way Myspace incorporates video into their model. Have you ever heard of urban storytelling? There’s this group in NYC called the Moth, and they put on storytelling events there. Right now, they’ve teamed up with the TV network TNT (we know drama) for some reason, and are doing a contest on Myspace called “What’s Your Story?”. Basically, you submit a video of yourself telling the story of the most risky thing you’ve ever done, and you can win a trip to New York and other cool stuff. It’s actually really interesting and I strongly suggest everyone check it out: http://www.myspace.com/mothstories . They show a few videos on the myspace page that are worth watching if you’re confused by what they do… It will be interesting to see the different video submissions of people telling their risky stories.
I figured that myspace would let people know more about there videos. Myspace never liked youtube or anyone trying to get a piece of the pie. Now that google owns youtube it will be interesting to see if myspace changes there feeling about youtube.
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I use myspace and friendlot.com the most i noticed you didn’t mention them but with there different features and the people itself on the site make it a unique social networking site.
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