Yahoo is reportedly preparing to launch its YouTube rival this summer

Is there room for another YouTube? Yahoo is ramping up talks with video producers and plans to premiere a rival to Google’s video service later this summer, according to people briefed on their plans. Yahoo had intended to unveil the new service at its upfront presentation for advertisers in April, but contract issues have held the project back. But for video creators dissatisfied with YouTube, Yahoo has a compelling pitch: more generous revenue-sharing deals, or fixed ad rates that are significantly higher than YouTube is currently delivering to creators.

There is no shortage of reports about Yahoo building a YouTube rival. At first the company was believed to be seeking a majority stake in Dailymotion but that deal apparently fell through. Since then it is believed to be working on its own video streaming service that would be backed primarily by user generated content. A new report claims that the site’s launch might have been delayed until the summer due to contract issues. Yahoo might be looking to hit YouTube where it hurts the most. Rumor has it that the company is going after popular YouTube users and luring them to its as yet unannounced service with promises of better ad rates and a much more generous cut than YouTube’s 45 percent. Ad Age cites people briefed on the company’s plans who say that Yahoo is talking with video producers to premiere the new service this summer.