Yahoo Working to Launch YouTube Rival This Summer

Yahoo is reportedly in talks with top YouTube stars and network executives for its new rival video service, slated to go live this summer, according to AdAge.

Yahoo Screenshot

In response to YouTube users who have lamented they don’t make enough on the platform (Google currently takes a 45 percent cut of advertising revenue), Yahoo is said to be offering a greater revenue share deal. The same goes for fixed ad rates, which may be 50 to 100 percent higher than YouTube currently offers.

There are to be many similarities between the platforms; users can create their own channels and host videos on the site, videos will be embeddable onto other websites, and they will offer pre-roll ad options as well. 

The service will not, however, be open platform at launch, Re/code reported in March. 

Yahoo will recruit talent rather than letting anyone sign up to upload videos, which is why it is in negotiations with YouTube stars and network executives, but the discussions have led to delays. The video service was previously scheduled to launch in April, but problems with contracts have held back the launch – one likely issue may be due to licensing. 

Contracts will be nonexclusive (so users can keep their YouTube channels, but Yahoo hopes the higher ad revenue will encourage them to choose Yahoo first) and will give creators access to Yahoo properties, but one stipulation is that Yahoo will automatically gain “perpetual license” for any content shared to Tumblr.

“I’ve never seen anything like that in my life, and I’m assuming they’re going to strike that [from the final contracts],” a producer whose contract has been revised multiple times told AdAge. “Anyone who’s done a content deal knows that would never fly.”

Yahoo has already ventured into video with its Screen video search engine, but efforts to further its video clout have not been successful. In 2013, the French government blocked the site from acquiring Dailymotion, and Hulu turned down its purchase offer a few months later.

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