As part of its major revival Yahoo will launch its own online video platform to directly rival YouTube, Vimeo and other more established services.
The new service will launch in summer, according to a report by Ad Age, and Yahoo is offering better terms to content creators than its major, Google-owned rival in order to encourage them to post their content on its platform first.
The report also claims that Yahoo will not stand in the way of creators if they want to post their videos to numerous platforms, but there is still a sticking point in negotiations with them that is delaying the launch.
Although Yahoo is offering the option of a fixed ad rate, said to be 50 or 100 per cent higher than YouTube's average ad rate, one creator spilled the beans over a contract clause that needs to be removed before he will consider posting his content to the site.
Yahoo stipulates that the platform would be given a perpetual licence to any videos that were shared to Tumblr, effectively transferring ownership rights to Yahoo to do with as it wishes.
"I've never seen anything like that in my life, and I'm assuming they're going to strike that [from the final contracts]," said a producer to Ad Age.
The website also claims that some content owners are worried by proposed plans to allow users to download videos for offline viewing.
However, it is believed that the contract issues will be ironed out in time for the summer launch to go ahead.
Yahoo had previously been rumoured to be offering between $700,000 and a few million per episode for original programming to host on a video platform to rival Netflix and Amazon. Perhaps it plans to make that content available for free to attract users.