More than 1 billion unique visitors visit Google’s video network – YouTube every month. Do we have a competitor to YouTube? Not yet but former Google employee and Yahoo CEO Marissa Mayer is considering to give serious competition to YouTube by building its own network.
Reported by Re/code, Yahoo plans to launch its YouTube like video network in the next few months. To make it happen it is also luring some of YouTube’s most popular stars and networks to show their stuff on the site, according to sources.
Yahoo may have failed to purchase streaming video service Dailymotion for an estimated $300 million last year, with the goal of taking on YouTube but now it is aiming at taking advantage of persistent complaints by both video creators and owners, who think that they don’t make enough money on YouTube.
Yahoo is offering the video makers and owners of the company better economics than they’re getting on YouTube, either by improving the ad revenue or by offering guaranteed ad rates for their videos. Additionally, Yahoo 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.
Yahoo has also told some video owners that it can use its well-trafficked home page and other high-profile real estate to promote their clips on a non-exclusive basis.
Yahoo wants to be a bigger credible player in video which can perhaps make the investors happy, who are about to see another lackluster first quarter.
YouTube is yet to confirm about the development but at the same time YouTube is working on making its grumbling partners happy. Its recent hire of Susan Wojcicki as the Youtube Head is already a positive move in the direction since Wojcicki has deeper experience in generating revenue with a multitude of partners, and many are looking forward to seeing how she will change the service’s offerings.
Online video space and ad-supported video are both becoming favourites of the market and investors.