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May 28, 2014

Yahoo to Debut YouTube Rival This Summer: Report

Yahoo Sunnyvale headquarters. (Y! Photo / Brian McGuiness)

Yahoo is expected to debut its upcoming Web-based video platform this summer as CEO Marissa Mayer looks to take on powerhouse YouTube.

According to a report by Ad Age, Yahoo is currently in talks with video producers in its bid to lure stars from Google-owned YouTube with promises of higher advertising revenue and guaranteed advertising rates. Google currently takes 45 percent of ad revenue while Yahoo plans to either give the larger share of the proceeds to the creators, or offer a higher ad rate overall.

Another of the rumored promises is that channel owners will receive more marketing with some even being featured on Yahoo’s home page.

Creators will not only be able to set up their own channels and host videos on Yahoo, they will be able to set up a publishing dashboard that can distribute across Yahoo properties such as its home page, its blogging service Tumblr and a network of non-Yahoo sites.

Yahoo’s video player will also be embeddable on other sites.

Mayer has also put in an order for four different high-quality Web series. The comedies are expected to have budgets of up to a few million dollars per episode. The shows were originally expected to be unveiled for advertisers April 28 during Yahoo’s ‘NewFront’ event, but that was delayed due to contract negotiations.