Yahoo! to cut content owners a better revenue share than YouTube
| 29 May 2014
It's no secret that Yahoo! has designs on the ad-supported online video space, and has reportedly hit upon a savvy idea to woo content creators to its platform and away from arch-rival YouTube.
According to AdAge, Google takes 45% of ad revenues generated from its partners' content, and now Yahoo! is planning to split revenues "more favourably". It is also rolling out a fixed ad rate - which AdAge said is 50-100% higher than YouTube's average ad rate - for pre-roll ads that run before the uploaded videos.
For Yahoo!, the idea is part of an on-going push by CEO Marissa Mayer to beef up the video content stable. Yahoo claims 800 million unique viewers per month, and Mayer would like to use that base to capitalise on the online video boom.
Yahoo! is also following in the footsteps of Amazon and Netflix, by developing a range of exclusive, original TV shows for its streaming video service. It has unveiled plans to produce two original comedy shows for the Web, one a science fiction show called the Other Space, and the other a Bryan Gordon-directed show about a pro basketball team called Sin City Saints. Both will debut next year. They'll mirror a traditional TV format, with each running for ten episodes.
The company also recently acquired the rights to Saturday Night Live's catalogue and some shows from Comedy Central. The company is also reportedly considering buying video syndicator NDN, and recently inked a deal with Live Nation Entertainment, the biggest concert promoter in the US, to live-stream video of music concerts once a day. The jams will start in July via a new online channel hosted by Yahoo! The video stream will house ancillary content as well, like backstage footage, exclusive access to the tour bus, and interviews before and after the show.