NBC and News Corp release YouTube rival

March 22, 2007

Media giants NBC Universal and News Corp. on Thursday announced plans to join forces with AOL, MSN, Yahoo and MySpace to form an online video distribution network—taking aim at Google’s popular YouTube operation.The video network, scheduled to debut this summer, will feature full-length programming, movies and clips from at least a dozen television networks and two major film studios. The television shows will be free, but users will pay a fee to download movies, though pricing has not been set.

NBC, News Corp. and the others are looking to use the Web video platform as a means to attract advertisers by offering the ability to post their ads online, as well as on-air. Cisco Systems, Intel and General Motors are among the companies that have signed up as advertisers.

The online video company, which will be based in Los Angeles and New York, is also taking aim at Google and its recently acquired YouTube, the popular user-generated video site. Yahoo, as well as AOL, MySpace and other Internet sites, are increasingly adding video content to their sites.

This a tumultuous time for YouTube. Earlier this month, entertainment giant Viacom sued Google for more than $1 billion in damages, citing “massive intentional copyright infringement.”

Under the NBC-News Corp. agreement, partners of the online video distribution network will be able to feature the site’s content on their own respective Web site, allowing them to add their own look and feel to the content’s presentation.

The network distribution site will launch with such clips and full episodes as Heroes, My Name is Earl, Saturday Night Live and The Simpsons. Movies slated for the network will range from such titles as The Devil Wears Prada to The Bourne Identity to Little Miss Sunshine.

The ad-supported site will also feature video playlists, mashups, online communities and video search.

“For the first time, consumers will get what they want—professionally produced video delivered on the sites where they live,” Peter Chernin, News Corp. president, said in a statement.

The new company will be headed by a transition team led by George Kliavkoff, NBC Universal’s chief digital officer. Executives from both NBC Universal and News Corp. will fill out the ranks.

Despite the wide range of players in the new venture, not all media and Internet companies are eager to jump in.

“CBS continues to pursue its interactive distribution strategy by partnering on an open, nonexclusive basis with best-in-class, next-generation platforms in order to reach and learn about its audience and get paid for its content worldwide,” CBS said in a statement. “As with all existing and potential partners, we will continue to discuss opportunities with NBC and Fox to determine if we can work together in the future, and we wish them well.”

Details of the venture were not immediately clear, including as to whether partners would be allowed to enter distribution arrangements outside of the NBC-News Corp. consortium.

The partners are scheduled to hold a press conference at noon PDT Thursday.

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