Hey, isn't that a YouTube star on Yahoo's video channel?

Yahoo's reportedly throwing money at YouTube celebrities in the battle for the online video pie

Is Yahoo trying to muscle in on Google's territory by offering an alternative to YouTube? Sure looks like it.

Reports have it that Yahoo is paying YouTube stars in an effort to encourage them to jump ship. The new channel is apparently going in a slightly different direction from YouTube's current mass of amateur videomakers, instead showcasing established YouTube stars and working with TV networks.

After all, it's no secret disgruntled YouTube "celebrities" have been complaining about seeing little return from Google, even when they've signed up as a YouTube 'partner'.

Where's the money?

Yahoo's also signed some pretty big content deals, with Saturday Night Live being a major coup. But could Yahoo really compete with YouTube, which has been the default platform to share and embed cat videos that'll melt your heart?

There's also the question of how Yahoo is planning to make money from all this. It's spent over US$10m to license SNL, but the jury's still out on whether and how they made money from that deal.

What's more promising is Yahoo's streaming app, Yahoo Screen. Mobile is still a growing market, and if Yahoo can somehow find a way to make viewing exclusive Yahoo content a palatable proposition on smartphones - or at least a better experience than Google's - it might have a fighting chance.

Though services like Netflix and Hulu seem to have video-on-demand on lock for the moment, the growing love for video and music streaming, makes us wonder if Yahoo can move fast enough in markets where Hulu isn't king. And by that, we mean everywhere outside the US.

[Source: News.com.au]

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