News Corp.'s MySpace has struck another savvy deal with a technology vendor. Level 3 Communications, a fiber network operator, has signed a multi-year agreement with Fox Interactive Media to transmit
Internet content, including video, to MySpace. It's unclear whether the deal also covers Fox's other Web media sites, like Rottentomatoes.com and IGN.com. Level 3 offers Internet capacity in 82
markets; its fiber-optic cable network allows Web sites to transmit more data more quickly. "We selected Level 3 because of the proven performance of its network, and Level 3's ability to support
increasing high bandwidth demand," Aber Whitcomb, CTO of MySpace, said in a joint statement issued by Level 3. Last month, MySpace's video site recorded 20 million visitors--trailing Yahoo Inc., which
had 21 million, according to comScore Media Metrix. YouTube, however, remains the Web's most popular video site. Level 3, which recorded a $201 million loss for the second quarter, has been buying up
other networks in order to build up its network capacity. It recently closed a $1.1 billion cash-and-stock acquisition of privately held TelCove last month, and is in the process of securing its
purchase of data transport services company Looking Glass this quarter.
Read the whole story at Associated Press »
