NYT: Widget Makers Are Leeches
A New York Times has an article on the subject and does well siding with Fox by suggesting that widget makers like YouTube are little more than leeches:
A couple of weeks ago, we wrote a post entitled ‘MySpace Shoots Large Hole In Foot?‘ which looked at how the MySpace ban on outside widgets went against all the the reasons why the site was so popular. We said:
A few weeks ago, MySpace decided to block all widgets that weren’t MySpace widgets – maybe as a step towards commercializing the content on the user generated pages. What the step did is restrict the freedom and anarchy that fueled the boom of MySpace. Will users flee from the service?
Now the New York Times has an article on the subject and does well siding with Fox by suggesting that widget makers like YouTube are little more than leeches:
MySpace, the Web’s largest social network, has gradually been imposing limits on the software tools that users can embed in their pages, like music and video players that also deliver advertising or enable transactions.
…Without a critical mass of visitors to their sites, many of these smaller companies are devising strategies that involve clamping on to sites like MySpace and Facebook and trying to make money off their traffic.
MySpace, meanwhile, is trying to show that it can generate stable revenue. Google will pay it at least $900 million over the next three years to serve ads to the site’s users…In the past, MySpace executives have said that the service failed to block companies like YouTube that began successful businesses from MySpace’s pages.
“We probably should have stopped YouTube,” Michael Barrett, chief revenue officer for Fox Interactive Media, a part of the News Corporation, said in an interview in late February. “YouTube wouldn’t exist if it wasn’t for MySpace. We’ve created companies on our back.”
Fox failing to understand social media maybe??