NBC Universal and News Corp have sealed plans to create an online site to distribute professionally produced movie and television content – the biggest media industry effort yet to knock YouTube aside as the top online video destination.

The site, which will launch this summer, has signed up AOL, MSN, MySpace and Yahoo to distribute the videos, which will be free to internet users and funded by advertising.

The plan appears to be another setback for Google, the internet search company, in its efforts to forge partnerships with traditional media companies after its October acquisition of YouTube for $1.65bn.