Yahoo! Plans ABC, CNN News Streams

Internet juggernaut Yahoo! (YHOO Quote) is set to launch enhanced video content with Time Warner's (TWX Quote) CNN and Disney's (DIS Quote) ABC News come September.

Streaming video is quickly becoming a greater force in the media world. Advertising dollars continue to shift online at a steady clip. The new Yahoo! service will come free of charge to users and will be ad supported.

The content agreement calls for both ABC News and CNN.com to provide the Yahoo! site with daily video news feeds. CNN.com will offer "extensive video clips daily" and ABC News will "offer a robust package of on demand video content," according to the company.

Video from both sources will be incorporated on the front page, within stories and throughout other news packages on Yahoo! News and will also be made available to the company's broadband subscribers.

"The addition of CNN.com and ABC News video to Yahoo! brings two of the world's most respected and valuable news providers to the Internet's largest audience," said Scott Moore, Yahoo!'s vice president of content operations, in a statement. "Video content is becoming an increasingly important component of the online news experience for Yahoo! News users, and these relationships are an important step in expanding the video content on our site."

CNN.com will offer extensive daily video content, including breaking U.S. and world news on politics, business, technology and other areas. ABC News will deliver a package covering the top news stories of the day as well as entertainment and political coverage.

Large players including Viacom's (VIA.B Quote) CBS News, Microsoft's (MSFT Quote) MSN, and Google (GOOG Quote) are all scrambling to roll out advanced video services as consumers gravitate toward online news.