Seeking Alpha

Reports: Yahoo looking to poach YouTube talent, land app pre-install deals

Re/code reports Yahoo (YHOO) is "working on a plan to lure some of YouTube’s (GOOG) most popular stars and networks" using a mixture of higher ad splits, guaranteed ad rates, and free promotion (including on Yahoo's home page).

Yahoo has been hungry to grow its library of professional video content, and thereby its video ad inventory. It already has deals with NBC and ABC, as well as one for a Katie Couric show.

The Web portal is hoping to appeal to some of the many YouTube content providers disgruntled over the online video giant's traditional 45% ad cut, among other things. But to succeed, Yahoo has to convince them its deal terms and promotional work will offset YouTube's colossal Web/mobile reach.

eMarketer estimates YouTube had 2013 gross revenue of $5.6B. comScore estimates Yahoo had 45M unique U.S. video viewers in January, and Google/YouTube 158M. Globally, YouTube has 1B+ monthly users.

Separately, The Information reports Yahoo has held talks with AT&T, Amazon, and Samsung about having its apps pre-installed on mobile devices, but hasn't yet reached any deals.

Though Yahoo claims to have 400M+ mobile users, many of them stem from pre-installed iPhone apps that aren't monetized. Google, of course, has its apps/services pre-installed on the lion's share of shipped Android devices.

From other sites
Comments (1)
  • Guy in Ithaca
    , contributor
    Comments (428) | Send Message
    Good luck to Yahoo! in its "poaching" expedition. While Yahoo! may be "using a mixture of higher ad splits, guaranteed ad rates, and free promotion," in their efforts, they certainly cannot be enticing people by offering shares with inflated value.
    29 Mar 2014, 05:46 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs