Media giants NBC Universal and News Corporation hope to use AOL, Microsoft and Yahoo! as distribution partners to launch the largest internet video distribution network yet, with content from television and film.
Users will have unlimited access to a "vast" library of content, including long and short-form video, an announcement from Peter Chernin, president and chief operating officer of News Corporation, and Jeff Zucker of NBC Universal revealed today.
Films such as Borat, Little Miss Sunshine, The Devil Wears Prada, as well as numerous TV shows, will be available on the service.
Advertisers already signed up for the new platform include Cadbury Schweppes, Cisco, Esurance, Intel and General Motors.
"This is a game changer for internet video", said Mr Chernin.
"We'll have access to just about the entire US internet audience at launch. For the first time, consumers will get what they want - professionally produced video delivered on the sites where they live."
Microsoft said in a statement: "Our investments in MSN Video and SoapBox over the past couple of years have shown us that video is an amazing driver of user engagement and excitement, both for consumers and for advertisers."
Viacom was also pursued to join the group, according to reports, but has instead opted to file lawsuits against Google for YouTube's "massive copyright infringement".
Google bought YouTube for $1.65 billion (£883 million) in October 2006.
