At least that’s what they’re calling over at Read/Write Web.

A report yesterday from Bloomberg says that Yahoo! is planning to revamp its online video offering by year’s end in an effort to compete with YouTube and MySpace TV. According to comScore, Yahoo! is actually third in the US in terms of total video streams, though their 4.6% market share is well off the pace set by Google (mostly via YouTube), which soundly dominates the online video space, serving more than 4.5 times as many videos each month as Yahoo!.

Ari Levy at Bloomberg reports that Yahoo! plans to beef up its video offering with more content from media partners as well as users. Yahoo! also plans to add video to its popular photo sharing property, Flickr. “One of our strategies is to put video everywhere you are on the Internet,” Yahoo!’s general manager for video, Mike Folgner, told Bloomberg. “We’re going to build a much better destination for you to access all this different content.”

Can they catch up to a 66% market share? Probably not. The questions perhaps for them is how will they differentiate and be better than YouTube? I can already think of many ways for a YouTube competitor to be better. Will Yahoo! take the chance or compete straight up where I’m not sure they can win.