The largest social networking website in the world, MySpace (NWS-A) has been having problems penetrating the Chinese market. In response, they've partnered with rival Microsoft (MSFT) to publish an MSN community channel in China.
According to Luo Chuan, chief executive at MySpace China, "The Chinese MSN network has a substantial user base and strong brand name. As a channel partner, this will help MySpace China to further enhance its brand image and continuously upgrade its quality of service to reach white-collar users."
The new MSN channel will offer entertainment and news, and will include free online music.
While the two companies are getting together with this initiative, they've been competing in the same spaces in other areas. For example, MySpace China just recently launched a new instant messaging application which will compete directly with MSN Messenger. There is also of course MSN Spaces, which has a lot of similarity to MySpace.
With China being such a tough market to gain traction in, these two huge companies could possibly come closer together in other areas as well. If anyone can gain a strong access to the Chinese market, growth is pretty much guaranteed for years to come.
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