Yahoo preparing assault on YouTube using favourable ad revenue terms

Watch out YouTube! Marissa Mayer’s on your case with a new video service that will reportedly address the litany of complaints that video creators and owners have about how YouTube handles the money side of things.

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Re/code reports that Yahoo is prepping its very own video service that is already targeting top end YouTube producers in the hope that it eventually mounts a credible challenge to YouTube.

Set to launch in the next few months, a number of industry sources stated the company has already begun to approach the stars of YouTube as well as large TV networks in the hope that they choose Yahoo’s product over YouTube’s approach to revenue sharing.

Executives from Yahoo have already started to push the issue with video makers and owners by telling them the better economics that the service will provide through the improved ad revenue and guaranteed ad rates for videos.

In addition, Yahoo will reportedly allow video producers to advertise on the Yahoo main page and sell advertising along with its Yahoo sales force.

“Yahoo Screen was part one,” said one producer, according to Re/code, who has agreed to be part of Yahoo’s video effort, about its current offerings. “Now, this is part two.”

Yahoo Screen, which was launched in September 2013, lets users stream content from Yahoo and its partners anywhere with the content organised into a variety of different channels depending on the category and whether or not it is trending.

Yahoo will focus on picking out the very best YouTube producers for the time being and once it has been around a year, one source inside Yahoo stated that the company may open the platform to a wider group of video owners and producers.

When it comes to managing the content it will either create its own content management system or could even choose to buy a ready-made solution, Vimeo mooted as a possible target.

Related: Yahoo shares slip following poor quarterly results

Yahoo last tried to enter the video sharing space by trying to buy a majority stake in Dailymotion just over a year ago and video looks like being one of the ways that Mayer’s leadership of Yahoo will be defined.