Yahoo has planned to introduce a video service similar to YouTube for quite some time. The Internet portal planned to introduce it in April, but now it's been confirmed that Yahoo will introduce it this summer.

Video creators will enjoy better ad rates and more generous revenue-sharing deals on Yahoo's video site.

Just like YouTube, Yahoo's video service will allow video creators to make their own channels to host their videos. Also, Yahoo's service will be display friendly on other websites as well, just like YouTube.

Once a video creator decides to host a Yahoo video channel, they'll get a publishing dashboard. They'll be able to share their content across Yahoo's sites, on Tumblr, as well as to a network of non-Yahoo sites.

Yahoo is already talking to video producers, trying to sway them to come to their service. They're eyeing the video producers that get the most hits. Those producers attract big advertisers.

YouTube video creators have frowned at the service's fee structures. YouTube takes 45 percent of ad revenue created by users that post videos. Yahoo's video service is said to be much more fair for video creators.

Yahoo won't require users who upload videos to remain exclusive to their service. If they want their videos on Yahoo and YouTube, Yahoo won't punish them, they just are trying to convince users to upload their videos to Yahoo first.

Yahoo has been active in trying to get into the video business. Last year, the company tried to buy European video website Dailymotion and then Hulu. Neither of the deals were completed.

Ads will be increasing on Yahoo's current videos as the company tries to test out the best ads before the video service debuts.

It is unclear what method Yahoo will use to promote videos. Some say they will use an algorothmic-based approach.

It will be interesting to see if video creators will flee from YouTube to Yahoo because of the better revenue potential that Yahoo offers.