The first paragraph of the Reuters' article states..
"NEW YORK (Reuters) - News Corp.'s Fox, Viacom Inc., CBS Corp.. and NBC Universal are in talks about creating a video Web site to compete with Google Inc.'s YouTube, the Wall Street Journal reported on Friday."
Which is an eye catching opening. Only, when you look further into the article, the site is not a rival to YouTube in terms of user generated content as the new site will show
"videos from their television networks".
Which, presumably, YouTube would not be allowed to show; so there will be no competition in terms of content. Where there will be competition is in the area of advertising dollars, as the companies
"aim to cash in on the fast-growing market of Web video advertising and have also discussed building a Web video player that could play clips"
So not so much rivaling YouTube for content, more competing with Google for advertising dollars then? Hmm, if that is your plan, good luck. :)
Source: Reuters.com