NEWS CORP AND NBC TO CREATE YOUTUBE RIVAL ( Dynamic Logic Study) March 23, 2007
Posted by Mark Blei in : Uncategorized , trackbackNEWS CORP AND NBC TO CREATE YOUTUBE RIVAL
News Corporation and NBC have announced that they will team up to launch a new online video site this summer, in an attempt to challenge the market dominance of YouTube.
Clips and full episodes from television shows such as 24 and House will be aired on the online portal for free, with films also available to viewers.
The news comes as a further blow to YouTube and parent company Google just one week after it was revealed that Viacom is to sue YouTube for alleged loss of revenues sustained by its clips being illegally shared on the video website.
News Corporation and NBC say that their new video network will carry advertising as a means of recouping revenue, backing recent trends.
A survey by DoubleClick this week revealed that video adverts are achieving far higher interaction rates with consumers, with web users found to be twice as likely to play a video ad as they were to click on a text advert. The study also noted that users frequently viewed such adverts more than once.
By contrast, a poll of readers of industry website MediaPost conducted by research firm Dynamic Logic noted that half of all marketers viewed viral marketing, frequently associated with forms of video advertising, as nothing more than a fad.
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