Analysts Weigh In on Prospects for NBC/News Corp Video Site
Can NBC Universal and News Corp'snew online video network compete against Youtube?
James McQuivey, an analyst at Forrester Research, told “Closing Bell” that the site won’t outdo Google’s YouTube in the near future. “They’re competing with tomorrow’s YouTube,” he said.
Larry Haverty, a fund manager at Gabelli Global Multimedia Trust, said distribution alliances that NBC and News Corp have set up with AOL, MSN,Yahoo! and MySpace will garner 96% of U.S. Internet users.
“You create this mammoth venture with this compelling distribution,” Haverty said. “The enthusiasm in the advertising community is very key here.” Charter advertisers include Cadbury Schweppes, Cisco, General Motors and Intel.
Users will have unlimited access to the site’s video library, featuring thousands of hours of movies and clips. Eventually, the site will allow users to create their own content.
General Electric is parent of NBC Universal, which owns CNBC.