It's hard to overstate just how stupid such a move would be. If News Corp. imagines for one second that MySpace users would simply accept that type of censorship, the executives running the company are woefully out of touch with their users. The execs are also weirdly disconnected from the very nature of social networking if they think they can play traffic cop to prevent users from visiting one of the most popular sites ever. The far more likely outcome is that users will abandon MySpace, not YouTube. After all, there are other social networking sites. Google itself runs one, Orkut--which is wildly popular in Brazil. News Corp. and other media companies obviously need to figure out where they fit in this new landscape.
But it should be just as obvious that they're not going to be able to diminish YouTube's popularity by trying to block their members from linking to it. That's exactly the type of desperation move that will accelerate an exodus from MySpace to a newer, less restrictive environment.
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