Two big media companies, the News Corporation and NBC Universal, finally announced today their joint venture to sell video clips and entire shows and movies via a new Web site and throughout the Internet on an advertising-supported basis.
The venture, which does not have yet have a name or a management team but is expected to start this summer, was announced after it secured distribution deals with AOL, Yahoo, MSN and MySpace, four of the most popular destinations on the Internet.
For undisclosed terms, those sites will feature the latest video fare from the media companies as well as shows from their TV and film libraries for viewing on a free basis supported by advertising. Visitors to the site will also be able to edit the content and post their own videos, a popular feature of other online video sites.
The nascent venture, which had been a loosely kept secret since last fall, was conceived as a response to the swelling popularity of the Web site YouTube and its acquisition by Google Inc. last year for $1.65 billion.