Yahoo! rumoured to be launching YouTube rival

Yahoo! may be aiming to penetrate the multibillion dollar video-sharing market by starting its own website, the latest rumours suggest.

According to Re/code, Yahoo! may start a video-sharing site much similar to its previous Yahoo! video venture, which would rival the likes of Google-owned YouTube.

In an attempt to lure users away from rival YouTube, sources say the company will try to offer YouTube stars contracts to move to the proposed site.

Yahoo's reported plans could see YouTube stars such as Pewdiepie make a permanent switch to their site.

While the company has not responded to these claims, it's not unlikely that the rumours are false. In recent years, Yahoo! has unsuccessfully attempted to invest in several ventures including French site Dailymotion in 2013Last May, the company also held talks to acquire movie streaming site Hulu, which failed after the site's owners rejected their offer.

In 2011, comScore ranked Yahoo Video third in the U.S in its category, behind Facebook and YouTube.

Yahoo! Video hits have declined since its peak in 2011.

Patrick Moorhead, an analyst with Moor Insights and Strategy, says Yahoo! has another chance of succeeding after the company de-ranked in 2011.

"Yahoo failed at video before, but that doesn't mean it would fail again. Yahoo needs to bring something demonstrably different to the table than what YouTube has. If they don't, they will fail. YouTube already has all the cat videos, so that wouldn't be a differentiator."

Yahoo! CEO Marissa Mayer took over the top position in in July 2012 promising shareholders that the company would return to its former glory under her leadership.

The CEO has announced the company will focus on a new direction in search, mail, mobile, social media to compete with their rivals.

Source: Recode via Computer World | Images via Font In Use, Crunchbase, Adweek

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mastercoms said,
Many people have tried, it's not going to work, especially from Yahoo

If yahoo offer a convenient platform, I think it still has a chance, especially if you consider that google has crippled a bit the youtube experience ( by forcing google+ share by default , the way comments are displayed and so on).

Most people got over the google+ thing and it actually makes conversations easier to read. Plus, Google has already built the infrastructure in both the physical and digital realms. It comes standard on near every device, people are familiar with the pay structure, and people are familiar with the service itself. This is why viemo and dailymotion are still behind youtube.

The only video streaming site that even comes close would be Vimeo. Usually higher quality videos mainly for a niche user base. It's my second most used video streaming site and even then it's about once a week.

Yahoo got rid of parlour games.

So instead of 10,000,000 games users being exposed to advertising, they have created a white elephant with what they are forcing people to play now.
I played pool, dominoes and go fish at yahoo and it was 99.999% good times with respect to software used.
I just ignored the morons, the losers and the cheats, the majority of us were happy.
Yahoo will become less valuable and probably get sold off cheap to a third party that will bring back parlour games.
Yahoo to the point could not rival google (youtube).

torrentthief said,
i wonder if there will be support for vp9/h265 and whether they will use opus as the audio codec.

yea, the return of "you-must-install-our-codec-to-display-video" but its also serve as click monitoring as long the IE's activeX was remain installed.

Many retarded video service put some stupid crap on the screen when you pause the video. That is why other video service will ALWAYS be a failure. A tip to the idiots that wants their video service to be popular. Don't put crap on the screen cos people need to pause and inspect the content!

Competing with YouTube is even harder then competing with Google on search. We all know how succesful Yahoo is at that. When you want to compete with YouTube then you have to rely on the support of a very large community of uploaders. Kind of like how a smartphone OS has to rely on its developers to bring its ecosystem to life.

The key difference is that with an OS you can add unique features that make your OS stand out and make developers seriously consider its viability. How is Yahoo going to differentiate itself and convince so many uploaders to bring their content to their service? There really are only two variables here: chickens and eggs. Yahoo doesnt have control over either.

Youtube is losing lately. I see more and more Vimeo. Where a few years ago noone but a select few knew of its existance (mainly streaming american tv shows not aired here or months/years later)'

Yahoo can pick it easy "No Google+ requirement, not being bombarded with advertisements... (seriously one every video and an unskippable 30+second one every 2-3 videos......)" and probably a few others and it _could_ quickly take over Youtube.

Internet services are not as strong as people think. The consumer generally doesn't care as long as it's easy to use, does not frustrate the consumer, is known and free.

I can't comment on Vimeo. Never used it, never seen anyone use it.

The consumer isn't picky but they go where the content is. It's going to be very hard to compete when YouTube. On YouTube you can find pretty much anything so it has become the go-to place.

This is why I make the comparison with operating systems, like YouTube they are ecosystems. What we've seen so far is that as soon as a ecosystem establishes itself they stick around for a long time. Windows is only losing ground because of radical innovations in mobile computing. So how do you figure that Yahoo will differentiate themselves?

Youtube does have the content, for now. Vimeo is catching up though. It just takes time for another to match it content wise.

There's plenty to differentiate. Youtube's last couple of updates did not improve anything. (google+)
And at least from what I get is people are getting absolutely frustrated about the amount of ads (this varies from country to country though).
This _could_ be enough for the masses to slowly move.

There wasn't much reason to leave Myspace behind either.

Personally I don't think Yahoo will be the one to uncrown Youtube, probably not Vimeo either. But someone will and depending on the right timing and whether or not people are fed up enough. This moment could be coming soon.

Facebook was better than Myspace because it didn't just connect people, it offered them tools to form groups, share activities and feel part of a collective. This was a major innovation in consumer social media.

If Yahoo or Vimeo are able to offer such an innovation then I agree, YouTube will have a serious problem. Content creators will then have a reason to move away. But at this point they do not. The Google+ requirement and commercials are very annoying but there is no competitor offering the same content or the same amount of content to browse through.

Mainstream consumers aren't annoyed to the point where they will protest by leaving YouTube. And if they do then Google will quickly reverse their policy. So really the only thing to break this is a major innovation such as collaborative social software (Facebook) and the appstore (iPhone). They don't just appear because someone wants to compete. Just look at Bing, only incremental innovations. It just isnt enough.

I think they can really succeed! They have on their side Marissa Mayer - former executive at Google, the one that is behind this project.

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