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AdAge: Yahoo getting set to launch YouTube rival

  • Yahoo (YHOO) is "ramping talks with video producers" ahead of a planned summer launch for a would-be YouTube (GOOG) rival, AdAge reports.
  • Backing up a March re/code report, AdAge's sources state Yahoo is looking to lure top YouTube content creators with a choice of either better ad splits - YouTube normally takes 45% - or a fixed ad rate 50%-100% higher than YouTube's average net rate. Yahoo is also comfortable allowing creators to simultaneously upload to YouTube.
  • While some creators are interested, others are said to be lukewarm, given their ad rates are currently well above the YouTube average. Moreover, YouTube recently launched a program (Google Preferred) that allows brand advertisers to buy ads for top creators alone.
  • Moreover, creators have reportedly bristled over some of Yahoo's initial demands, such as giving Yahoo a perpetual license to videos shared on Tumblr. One producer: "Anyone who's done a content deal knows that would never fly."
  • Yahoo, bent on growing its video ad inventory, has already struck a high-profile deal with Katie Couric and has begun dabbling in original content. More recently, the company was reported to be a near a deal for streaming software/services firm RayV.
Comments (3)
  • DanoX
    , contributor
    Comments (2701) | Send Message
    But the little people will be happy to upload their videos for free to new location, and Facebook won't far behind with their video site either. Google had better get that hardware profit up and running. Hmm...
    27 May, 08:58 PM Reply Like
  • Manitobatex
    , contributor
    Comments (690) | Send Message
    Sad state of affairs. OOHY is headed the wrong way. Maybe a new approach....charge more than the competition.
    28 May, 12:20 AM Reply Like
  • Guy in Ithaca
    , contributor
    Comments (412) | Send Message
    Yahoo! will figure it out and do well in video. YouTube, which I have used for years, is an unpredictable mishmash of some good and lots of garbage. There is a huge, huge opportunity here for companies to do video much better. Maybe one is Yahoo!.


    Only time will tell here.
    28 May, 11:04 AM Reply Like
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