News Corp. and NBC Universal have teamed up to launch a video distribution site this summer. The video site will be featuring thousands of hours of content from at least a dozen networks and two major film studios. The broad scale online distribution is expected to drive ad dollars to a new multi-partner media venture. According to a joint statement from News Corp. and NBC Universal, Yahoo, Microsoft Corp., Time Warner Inc.’s AOL and News Corp.’s MySpace will be the site’s initial distribution partners.
News Corp. president Peter Chernin has said that the untitled venture as will be the largest advertising platform on Earth. Research firm eMarketer has recently reported that $410m (£210m) was spent on online video advertising last year. And the rising ad spending on the online content will definitely contribute a significant part of its revenue on to-be-created website.
According to reports, Advertisers have already started showing interest in buying slots on the unnamed network. Reports have revealed that prominent advertisers planning to buy advertisement space include Cadbury Schweppes, Cisco, Esurance, Intel Corporation, General Motors and Royal Caribbean.
Peter Chernin has further said that the advertiser’s demand for this kind of video online gives tremendous credibility, which is already to the offering.
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