Are networks competing?

Of course!

Some compromise profits cut in order to attract people who want cash, others are beefing up on features and support, etc;
Its becoming an industry for a lot of networks
 
Machinima is not competing with anyone though, they basically own what they are advertising like VEVO.
 
Everyone's competing in the business industry, so for example: Fullscreen might take 10% of your earnings where another network might take 30%, or they might have a higher CPM, so yeah they're competing in many different ways.
 
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