Yahoo! is working on developing its own video sharing platform to rival YouTube
What: Yahoo! is working on developing ts own video sharing platform that will compete directly with Youtube.
Why it matters: The onbline video advertising opportunity is huge and YouTube is reaping most of it. Yahoo wants a bigger part of the action. The internet giant, led by CEO Marissa Mayer, is working on a strategy to appeal to some of YouTube’s most popular stars and networks to show their stuff on the site, by offering them better ad revenues or guaranteed ad rates for their videos.
Yahoo is supposedly developing its on video sharing platform to rival YouTube, and working on a plan to appeal some of YouTube’s most popular stars and networks to show their stuff on the site, according to what sources told Re/Code.
This strategy, which Yahoo hopes to launch in the next few months, is taking advantage of persistent complaints by both video creators and owners, who think that they don’t make enough money on YouTube.
The idea is to take advantage of persistent complaints by both video creators and owners, who think that they don't make enough money on YouTube
As creating an online video service is a much bigger deal , Yahoo executives have told video makers and owners that the company can offer them better economics than they’re getting on YouTube, either by improving the ad revenue or by offering guaranteed ad rates for their videos.In addition, the company has offered extensive marketing, even on its home page, as well as allowing video producers the ability to sell advertising along with Yahoo’s sales force.
One difference in its’ approach, is that Yahoo is not aiming to copy YouTube's open platform that lets users upload 100 hours of content every minute to the network; but is instead, interested in " picking" popular and professional YouTube offerings , at least for now.
However, according to Re/Code ,the company might open the platform further, though at an unspecified time frame.
Yahoo CEO Marissa Mayer, former executive at Google, is apparently the one pushing for the new video platform. Given her vast experience, Yahoo might have a chance at succeeding where others have failed. Whatsmore, Video is obviously an explosive area and an arena in which Yahoo can perhaps offer a credible alternative.
One source inside the company said that Yahoo is fixing a new content management system for the effort, although some suggested it could also buy an existing service like Vimeo for a more universal distribution platform.
While video makers have openly yearned for a well-financed competitor to try taking on YouTube directly, none have surfaced yet. Both Facebook and Amazon are also kicking around plans to move more aggressively into ad-supported video, as The Information and The Wall Street Journal have reported.
Meanwhile, investors are showing renewed interest in YouTube-related businesses, sparked by Disney’s US $500 million acquisition of Maker Studios, a YouTube network with US $ 5.5 billion monthly views.
At the time of this writing, Yahoo has not responded to comments regarding the report.