Yahoo To Introduce YouTube Competitor This Summer

Yahoo will be introducing a video platform this summer to compete with a range of Google's services, including YouTube, sources have told AdAge. The Yahoo video platform was first reported on in March and since then, the service's developers have reportedly sat down with video producers and worked to sign deals with content creators.

Displacing or competing against a service like YouTube would not be easy, but Yahoo is making the argument that it will see success because the video platform will offer what Google does not. YouTube may be the most popular video sharing platform, but content creators have long complained about some aspects of the service, providing Yahoo with a way to lure people away from Google's ecosystem.

All About Money

One of the main benefits that content creators will reportedly see when joining Yahoo's video service is additional advertising revenue, as a larger percentage of that will go to them than is the case with YouTube. Google keeps 45 percent of YouTube ad revenue. Yahoo has already started offering either a better percentage or a fixed ad rate, although specific numbers have not been leaked.

A 50 percent or 100 percent higher fixed ad rate is attractive to large channels that have a following capable of supplying creators with hundreds of thousands of views per video. According to video-advertising company Tubemogul, YouTube's average ad revenue is $9.68 per thousand impressions, and Google takes $3.87 of that. On Yahoo's platform, creators could potentially see a greater amount of money each month.

Some Troubles

Even if Yahoo's video sharing service was superior to YouTube, with better fixed ad rates and a great uploading and video management system, the service would not be a guaranteed success. There are some aspects of Web sites like Vimeo that make them a great alternative to YouTube, yet no...

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