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MySpace which recently blocked Photobucket from their site has now lifted the ban and MySpace users could see their Photobucket videos, photos and slideshows on their profile pages once again. The revelation has been made by Alex, CEO of Photobucket on the Photobucket blog.

Some funny points in the announcement are:

• All Photobucket videos and remixes are enabled once more on MySpace with immediate effect. Both our companies are committed to putting our users first.
• Moving forward, we’ve established open lines of communication and procedures with MySpace to prevent a sudden block of Photobucket content in future. We want our users to be able to share their content and understand it must be within the framework of MySpace’s Terms of Service for it to appear on the site.

Dear Alex if you or MySpace would have put your users first, this incident would not have happened in the first place, and from the second statement I am forced to conclude that you are sorry for the fact that you guys put ads inside the widgets and hence violated MySpace’s ToS. All in all the statement is strange, specially given the fact that Photobucket initiated an elaborate PR campaign against MySpace asking their users to take the battle to the keyboards.

Techcrunch wants to know who blinked first and why, where as Mashable thinks that this is a surprising move on part of MySpace: the PR damage was already done a sustained block would have been sweet revenge for Photobucket’s media attacks.

Experience tells us that for sites that become as huge as Photobucket is now, a sustained block by even a country is not possible let alone a company like MySpace. Case in point is the blocking of Youtube first in Turkey and then in Thailand, both of these blocks got lifted within no time.