According to a report on AdAge.com yesterday, Yahoo is planning to launch their video service later this summer in an effort to compete with Google’s YouTube. “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.
Peterson goes on to say YouTube creators have a history of being displeased with YouTube’s standard revenue split, with Google getting 45 percent of ad revenue. Ad Age claimed Yahoo is offering a revenue split that favors creators, and a fixed ad rate option that could be 50 to 100 percent higher than YouTube’s average net ad rate.
Ad Age said the new video platform had originally been scheduled for an unveiling at a presentation for Yahoo’s advertisers in April, but was delayed due to contract issues. The article claimed contract negotiations between Yahoo and video producers hit a snag over content ownership, with Yahoo demanding it would gain ownership over videos shared on Tumblr, the site’s blogging platform.
One producer who is in contract talks with Yahoo told Ad Age, “Anyone who’s done a content deal knows that would never fly.”
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