NBC and News Corps' challenge to YouTube

This has the potential to be really big boost for licensed content. NBC and Fox are both planning to make their hit TV shows and movies available via the new online channel in an ad-supported model. YouTube could take a big hit as a result of this venture, especially considering they are partnering with AOL, MSN, MySpace and Yahoo! which gives them huge exposure.

News Corporation and NBC Universal will launch the largest Internet video distribution network ever assembled with the most sought-after content from television and film, it was announced today by Jeff Zucker, President and Chief Executive Officer, NBC Universal and Peter Chernin, President and Chief Operating Officer, News Corporation. The video-rich site will debut this summer with thousands of hours of full-length programming, movies and clips, representing premium content from at least a dozen networks and two major film studios.

AOL, MSN, MySpace and Yahoo! will be the new site's initial distribution partners. Their users, who represent 96 percent of the monthly U.S. unique users on the Internet, will have unlimited access to the site's vast library of content. This media alliance will offer consumers free long- and short-form video and create a compelling platform for advertisers, targeting the rapidly growing audience of online video consumers.

NBC Universal and News Corp. Announce Deal with Internet Leaders AOL, MSN, MySpace And Yahoo! to Create a Premium Online Video Site with Unprecedented Reach: Financial News - Yahoo! Finance