Yahoo strikes content deal with the BBC and Channel 4

by Ann-Marie Corvin, Media Week 15-Jul-08, 07:30

LONDON - Yahoo UK is attempting to increase its presence in the nascent but potentially lucrative online video market by securing content from mainstream UK broadcasters for the first time for its Yahoo Video service.

Yahoo has struck content partnerships with the BBC and Channel 4 to attract advertisers into running campaigns around professionally produced, rather than user-generated content.

Initially, Yahoo Video will offer short-form clips around shows such as EastEnders, Top Gear, In Cold Blood, Baywatch and Big Brother.

According to Yahoo UK head of planning and strategy Phil Macauley, Yahoo's plan is to give viewers a taster of TV programmes, using Yahoo as the starting point for content and directing viewers towards its content partners' sites to watch longer versions.

"As broadband speeds improve, video is going to be a fairly important part of consumer behaviour on the internet and we are in talks with a number of partners as we look to expand video across all areas of the site," he said.

Macauley added that Yahoo is focusing on professional content for Yahoo Video, produced by premium broadcasters, adding that advertisers were growing weary of user-generated content that features heavily on many online video sites such as YouTube.

"The whole point of the content partnerships is for us to offer top-quality content that our advertisers can feel safe advertising their brands with," said Macauley.

While Yahoo hopes to build up an audience before it approaches advertisers for its TV content, it intends to offer pre and post-roll advertising.

Macauley declined to confirm whether Yahoo is entering into an ad revenue share with either C4 or BBC.

Despite their popularity, online video services have yet to generate significant returns for their backers.

Google, for example, expects to earn $200m from YouTube this year, reportedly well below its expectations. Meanwhile, online TV platform Joost, backed by the founders of Skype and Kazaa, has been forced to rein in its global expansion plans and focus on the US market after struggling to secure enough content from markets such as the UK.