Yahoo looking to take on YouTube

By James Riches topicIcon Internet News

Marissa Mayer plotting shift into online video marketplace

Yahoo CEO Marissa Mayer is reportedly pushing plans to set up a video site that will challenge the dominance of YouTube.

She is thought to have spotted an opportunity to tempt away high profile YouTubers who have expressed frustration that Google is not making their work worthwhile from a financial perspective.

Yahoo could propose to offer them a bigger slice of ad revenue than the 55 per cent they currently receive, or possibly provide an incentive in the form of guaranteed ad rates for videos. Users could also enjoy more freedom to sell advertising on their work, and have the opportunity to showcase their work on the company homepage.

It is expected that Yahoo will not seek to copy the system YouTube uses, instead focusing on high quality visual content made by skilled creators.

Branching out into video has been on the Yahoo agenda for a while. The company failed in a bid to buy French site Dailymotion last year, and it has been suggested they may well try and procure an existing service such as Vimeo rather than making their own brand new CMS.

Can Yahoo realistically hope to topple YouTube?

Mayer's ambitious plan is sure to have caught the eye of new YouTube boss Susan Wojcicki, who like Mayer was among Google's first 20 employees.

One of Wojcicki's first tasks will be to try and make YouTube's best users happier and more incentivised. However, sources suggest that Google chiefs still believe YouTube to be the best online video platform available, so a viable competitor may well be the only way to see big changes happen anytime soon.

Kleon West, business development director at theEword, said: "After nearly two years in the job, Marissa Mayer is still trying new things to try and build Yahoo back up to where it has been previously. She hasn't quite managed it so far, but maybe this idea will be the one that sticks."