Peter Chernin, President and COO of News Corp. (parent company of MySpace.com), announced to investors that social networking conglomerate, MySpace.com is announcing a new tactic for taking on various Web 2.0 companies head-on especially in the form of video streaming services.

Chernin was directly referring to YouTube.com. Chernin had addressed these concerns about MySpace growth tactics at the Merrill Lynch Media & Entertainment Conference in Pasadena, CA on Tuesday, September 12.

Chernin told MultiChannel News that 60-70% of YouTube’s internet traffic comes from MySpace.com. This is why Chernin stated that “Given that most of their traffic comes from us” Chernin stated. “If we build adequate if not superior competitors, I think we ought to be able to match them if not exceed them.”

Chernin also mentioned that there were other Web 2.0 applications burglars taking internet traffic loot from MySpace.com. “If you look at virtually any Web 2.0 application, whether it’s YouTube, whether it’s Flicker, whether it’s Photobucket or any of the next-generation Web applications, almost all of them are really driven off the back of MySpace, there’s no reason why we can’t build a parallel business.”

Not only that, but Chernin announced that MySpace is planning on testing streaming videos using studio content from News Corp. child companies. Currently, News Corp. owns studios, 20th Century Fox, Fox Television Studios and satellite television channels such as a 20% holding in Tata Sky and 38.3% holding in DirecTV Group.

While News Corp. is undergoing negotiations with the Fox network to retrieve content from them, this could work advantageously in favor of MySpace as Fox networks owns the rights to many popular shows. The Fox network has been aggressive in disallowing clips of the TV shows that they own the rights to from YouTube. One day you may see a “The Simpsons” video clip but by the next it would be gone.

MySpace.com isn’t the only big player looking to take on YouTube.com. Microsoft has been developing a similar application by the name of Soapbox, which also is rumored to have similar functions as YouTube. Microsoft will be leveraging technologies for the user to be able to upload a 100MB file from a user, tag videos, categorize videos, import RSS feeds, and integrate such videos to a Windows Live Space blog.

As of right now, responses from YouTube executives are still being waited upon to see how they are reacting about Bill Gates’ and Rupert Murdoch’s companies wanting a piece of the action from them.