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Yahoo reportedly positioning Tumblr as YouTube rival

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Yahoo has finally decided to do something with its Tumblr acquisition, according to a new report, and that involves turning it into a YouTube-rivalling video service.

Ever since Yahoo acquired the blogging platform Tumblr last year, the two companies appear to have pretty much continued doing their own thing.

Now, however, BusinessInsider claimed that Yahoo has revealed (or finally come up with) its master plan - to turn Tumblr into a genuine YouTube-style video service.

According to three distinct sources - "one close to Tumblr, one close to Yahoo, and a third close to a digital-media publisher approached by Yahoo about the plan" - Yahoo is looking to actively entice current YouTube stars to defect to a new-look Tumblr.

The carrot on the stick will apparently be increased royalty rates. A persistent complaint from prominent YouTube channel creators in the past has been that the share of the advertising spoils from their work was not fairly distributed.

By offering a larger slice of the pie, Yahoo will hope to poach content creators away from YouTube.

Of course, as the report points out, YouTube has gone some way to addressing many of its stars' complaints in recent times, so Yahoo's plan will be all the tougher to execute.

The report claims that Tumblr was the natural choice for Yahoo's plan to take on YouTube, as it is a user-generated service with high awareness and credibility among young web users, as well as an established social element.

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