Yahoo Plots to Compete with YouTube for Summer Launching After Delay

Yahoo is planning to launch their video service later this summer in an effort to compete with Google’s YouTube.

Now Yahoo has been in talks to launch a video service, but contract issues have caused delays. The Yahoo’s video service has nearly the same features like YouTube, which would allow users to create channels, host their videos, and embed their content anywhere. The company is preparing their final product and hopes to launch its YouTube rival this summer.

“For video creators dissatisfied with YouTube, Yahoo has a compelling pitch: more generous revenue-sharing deals, or fixed ad rates that are significantly higher than YouTube is currently delivering to creators,” writes Ad Age reporter Tim Peterson.

Yahoo needed to make its platform more appealing a creator-friendly. According to those familiar with the company’s plans, Yahoo will offer share revenue and fixed ad rates generously with video producers. Yahoo has promised more generous revenue split, and fixed ad rates that are quite a bit higher than YouTube is offering. Google takes 45 percent of their ad revenue, which has long been a point of contention with its users. Yahoo is offering a revenue split that favors creators, and fixed ad rates that could be 50 to 100 percent higher than YouTube’s average net ad rate, so the creators will get more out of the partnership.

Yahoo won’t users to remain exclusive in their contracts. The creators will be able to post to both YouTube and Yahoo.