Yahoo is considering launching its own version of YouTube, according to a Re/code report from March 28.
The new site, which is expected to debut in the next few months, is meant to be an alternative for artists who say they do not make enough money with YouTube, the report said.
Yahoo has already begun enticing several well-known YouTube video producers and networks, according to industry sources.
"Yahoo executives have told video makers and owners that the company can offer them better economics than they're getting on YouTube, either by improving the ad revenue or by offering guaranteed ad rates for their videos," the report said.
Yahoo will also let video producers on its site sell advertising.
"Yahoo Screen was part one," said one producer linked with Yahoo, referring to the company's already launched, video sharing website. "Now, this is part two."
According to the report, Yahoo CEO Marissa Mayer, is seeking a way to make the company more known for its online videos. The company previously attempted to do so by purchasing Dailymotion, a French YouTube-like site. However, Yahoo was unable to buy the site and the endeavor failed.
But this time Yahoo's plan, if it turns out to be true, is well timed- YouTube partners have been voicing unhappiness with the video-sharing giant's lack of revenue over the last two years, the report said. A total of 45 percent of ad revenue goes to YouTube.
Some have even created their own video sites or left to partner with other video sharing platforms, like Microsoft's Xbox, the report said.
Now all Mayer has to do is prove she can expand the company after two years as CEO. But Yahoo sources said performance for the current quarter was not spectacular, the report said.
Yahoo has not confirmed it is developing a YouTube alternative.
