According to a report on the Re/Code website, Internet giant Yahoo! has begun working on developing a video platform that will compete with Google's successful video site YouTube, while at the same time the company has approached a number of big YouTube stars to try and persuade them to make the switch to the competing service, which Yahoo! is expected to launch in the coming months.
Last year, Yahoo!'s attempts to acquire European video site DailyMotion failed due to French authorities refusing to proceed with the deal. Yahoo! was also mentioned last year in connection with a possible acquisition of popular content site Hulu, but that too was scrapped when the site's media partners invested a sum of $750 million.
Google owns the world's largest video site, YouTube. The company acquired its operations in October 2006. YouTube has over a billion monthly active users – far more than the major competing sites in the field, which include DailyMotion (about 120 million monthly active users), Vimeo (about 130 million users) and Yahoo!'s current video service, Yahoo! Screen, which has about 125 million monthly active users.
The content on Yahoo's current video site comes largely from content agreements the company has made in recent years.
In order to make the company's video platform more attractive, Yahoo! reportedly decided to approach YouTube leaders with an offer to join the company, where they could receive a benefits package that includes larger payments for advertising on their channels, exposure on Yahoo!'s video channel and home page, and help working with the company's advertising department to promote the content channels with major advertisers.
The move of major content channels from YouTube to a rival Yahoo! service could boost the internet giant's user base, but the huge difference (closer by 10) Between the numbers of users on YouTube and Yahoo!'s existing video channel, it could negatively affect content owners, so a switch could even seal their fate if they choose to do so.
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