YouTube has been the dominant video sharing service since it launched many years ago, but Yahoo is looking to try to knock them off their pedestal. According to a new report posted on AdAge.com, Yahoo is getting ready to launch an all new video service this summer, with quite a few attractive options that may attract top video producers.
According to the report, Yahoo is in discussions with major video producers and is nearly ready to launch a ‘premiere’ rival to Google owned YouTube. The major attraction to video producers will be increased revenue opportunities. According to reports, Yahoo will be offering a significantly higher share of the revenue than people can earn when sharing on YouTube.
Google currently takes 45% of ad revenue produced by videos on YouTube. While Yahoo has not announced the specific numbers, they are looking to offer between 50 and 100% more to the video makers than Google does. In addition, there is no exclusivity requirement from Yahoo, so video producers can post their creations on both YouTube and Yahoo’s new service to attempt to maximize income.
Yahoo has been trying to break into the online video business for over a year now, making attempts to purchase sites like Dailymotion and Hulu, but being unable to complete the purchases. Launching their own video sharing service may be an uphill battle, but it is certainly possible given their ability to spend a significant amount of money promoting it and attracting top video creators.
While there are still some contract issues that need to be resolved between Yahoo and major video creators, the network will likely launch this summer. Its success will likely be dependent on having some major video producers on board at launch making quality videos that will attract the necessary user base.
