NBC and News Corp seem to still be bitter about the massive amount of traffic and attention YouTube is receiving. To the media world, YouTube is looked at as the neighbor that will borrow your tools and forget to give it back. So NBC and News Corp are planning to launch a video site of their own.
The name of the video site is still T.B.D., but we know it will feature content from shows produced by NBC and FOX. I can’t even fathom the negotiations that took place to make this video deal happen between these two companies because I could have sworn that they are each other’s biggest competitors. I guess the existence of YouTube turns rivals into friends.
Perhaps the inspiration for pursuing and announcing the idea was fueled by interested investors. More specifically, the $100 million for 10% equity deal that Providence Equity Partners is willing to bet on.
NBC and News Corp also hired Jason Kilar as the CEO of the unnamed company. And Kilar may be expected to sign deals with other potential content providers (i.e. Disney, CBS, Viacom, etc.).
Another factor to be considered for “New Site” will be about how to capture the market that Joost has (formerly known as The Venice Project).
[Source: Red Herring]
