After blocking videos from Photobucket for showing ads on its site, MySpace and Photobucket have resolved their differences. Social networkers can once again post videos from their Photobucket account to their MySpace pages. TechCrunch's Michael Arrington wants to know the backstory behind the reconciliation. I have an idea.
Last week, at our Disruptors Roundtable in Los Angeles, I asked MySpace's chief marketing officer Shawn Gold about the tiff. Why not just cut a revenue-sharing deal and be done with it?
He agreed that is the right approach and hinted that those types of deals would probably be worked out in the future (not just with Photobucket, but other widget-providers who provide content to MySpace). The issue with Photobucket, in his view, was that it was acting in bad faith. It was showing ads in hosted videos that were embedded in MySpace pages, and when asked to stop, it did not comply. When MySpace shut the videos down, Photobucket went public in an effort to redirect any resulting consumer anger at MySpace.
After all, the entire site is built on the premise that consumers can pretty much do whatever they want with their Web page. The incident highlighted the fact that, in the end, MySpace is really News Corp.'s space. Better to make up than keep that issue in the limelight. But until they can figure out a revenue-sharing deal, don't expect to see any more ads in those Photobucket videos.