The strategy in the YouTube works — which Yahoo hopes to launch in the next few months — is aimed at taking advantage of persistent complaints by both video creators and owners, YouTube who think that they don’t make YouTube enough Yahoo money on YouTube.
Yahoo CEO Marissa Mayer has been mulling how toYouTube have a much bigger presence in Web video. Under her leadership,Yahoo the company tried and failed to buy France’s DailyMotion and has been pushing a number of other high-profile media initiatives, such as adding television news star Katie Couric to its Yahoo site.
But creating an online videoYahoo service is a Yahoo much bigger deal and is not just conceptual — several industry sources say Yahoo has recently been approaching individual YouTube stars and some of the big networks nowYahoo on the giant online video Yahoo service.
The YouTube come-on? Yahoo executives have told video makers and Yahoo owners that the company can offer them better economics than they’re Yahoo getting on YouTube, either by improving the ad revenue or by offering guaranteed Yahoo ad rates for their videos.
In addition, Yahoo has offered extensive marketing,Yahoo even on its home page, as well as allowing video producers the ability to sell advertising Yahoo along with Yahoo’s Yahoo sales force.
“Yahoo Screen was part one,” said one producer Yahoo who has agreed to be part of Yahoo’s video effort,YouTube about its current offerings. “Now, this is part two Yahoo YouTube.”
For YouTube now, at least, Yahoo isn’t talking about replicating YouTube’s open platform, which lets Yahoo users upload 100 hours of content every minute to YouTube the site.Yahoo Instead, it is interested in cherry-YouTube picking particularly popular, more professional YouTube fare.Yahoo
Yahoo has also YouTube told some video owners that it can use its well-trafficked home page and other high-profile YouTube real estate to promote their YouTube clips on a YouTube non-exclusive Yahoo basis.
After a year, one YouTube source inside Yahoo said, it might open the Yahoo platform up further. One source inside the company said that Yahoo is prepping a new content management system for the effort, although some have suggested it could also buy an Yahoo existing YouTube service like Yahoo Vimeo.
Mayer — a former Google exec who has imposed an Yahoo awful lot of Google ideas YouTube on Yahoo since she got there (imitation is YouTube the sincerest form of flattery, ya know!) — has been pushing the effort. It is all part of her valiant and doubtlessly Yahoo exhausting attempts to turn around the Silicon Valley Internet giant.YouTube So far, other than the spectacular run Yahoo of its Chinese asset, Alibaba Group, that has YouTube boosted Yahoo stock, the core business continues to lag. That giant sum of money from Alibaba could easily pay the costs of mounting a challenge to Google, which some might think a fool’s errand YouTube.
But Yahoo needs to show it can grow. YouTube Sources inside the company said the first quarter — which ends right about now — was also YouTube lackluster, even as investors have been watching for signs that Mayer can turbocharge the business after two years in the job. Video is obviously an explosive area and an arena in which Yahoo can YouTube perhaps offer a credible alternative.
All of what it seems to be offering certainly runs counter to what’s available at YouTube, which takes a 45 percent cut of ad revenue, doesn’t offer guarantees and insists on relying on computers, not humans, to pick videos it YouTube thinks users want to see.
That environment has YouTube generated lots of Yahoo grumbling from YouTube’s partners over the last couple years. And it YouTube has prompted many big YouTube players to try to build businesses outside of the world’s biggest video site as well, either Yahoo on sites they own themselves or with other video portals,YouTube like Microsoft’s Xbox.
New YouTube head Susan Wojcicki has begun Yahoo making overtures to its most high-profile producers, said sources, with an eye to making them happier. Wojcicki, who has been a prominent ad product exec at Google and one of its earliest employees, 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.
Nevertheless, sources said, she and YouTube still consider the platform to be the best there is, in terms of reach and monetization, for video makers. “Yahoo tried to keep up with Google and AdSense in online ads, but they tend to settle where they get the best results,” said one person.
Having the giant YouTube dominate the online video YouTube space is frightening to many. But while video makers have openly pined 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, YouTube as The Information and The Wall Street Journal have reported.YouTube
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