MySpace could be affected by YouTube rights dispute

The dispute between YouTube and the Performing Rights Society (PRS), which has seen a large number of music videos removed from the popular site in the UK, could also affect MySpace.

The Guardian reports that MySpace UK has also failed to strike a deal with the PRS, a group which collects and pays royalties to performing artists.

The news could see MySpace's free music service come under threat unless the two parties can come to an agreement. But the PRS is alleged to be asking for a king's ransom in return for music licenses.

"A lot of service providers are negotiating and renewing licences with PRS right now, but the rates are widely known to be uneconomical," an unnamed source told the Guardian. "Nobody could run an online business on those terms."

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