NBC, News Corp Set Up YouTube Rival

Business | March 23, 2007, Friday // 00:00

Entertainment conglomerates NBC Universal and News Corp have teamed up to set up an alternative to Google's popular YouTube video sharing site.

The service, to be launched in the summer, will feature full-length shows aired on the NBC and Fox television networks, and even whole movies, the two companies said in a joint statement.

The owners of the service, which remains still unnamed, have already secured agreements to distribute it via America On-Line, MSN and Yahoo.

The content of the service will be free, NBC and News Corp. said. The website will be funded by advertising, including from Cadbury Schweppes, General Motors and Intel.

NBC and News Corp tried to get Viacom, owner of MTV Networks and Comedy Central, and CBS on board for the venture, but talks collapsed last year.

Television and film companies in the U.S. are growing increasingly tired of YouTube's operating model, and Viacom recently became the first major entertainment company to sue Google, demanding damages in excess of USD 1 B.

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