UPDATE 1-News Corp sees $1 bln Internet revenue this year

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NEW YORK, Oct 19 (Reuters) - News Corp NWSa.N expects its Internet revenue to reach about $1 billion this fiscal year, Chairman and Chief Executive Rupert Murdoch said on Friday.

The target represents a tightening of its earlier expectations. At the end of its fiscal fourth quarter, News Corp said it would be "surprised" if its Fox Interactive Media Internet division revenues "do not exceed $1 billion with margins well above 20 percent."

Also, on Thursday, the company cut its fiscal 2008 revenue outlook for its MySpace online social network to about $750 million from its prior target of over $800 million.

"While other competitors have entered the arena, none of our peers ... (come) close in sheer numbers," Murdoch said at his company's annual shareholders meeting.

MySpace has attracted some 110 million users globally. (Reporting by Kenneth Li, editing by Brian Moss/Gerald E. McCormick)