According to wire reports, NBC Universal (NYSE: GE) and News Corp. (NYSE: NWS) ended the suspense today by announcing that they have chosen CNET Networks (NASDAQ: CNET) to distribute their content on the internet. NBCU will provide content from its stable of networks as well as its vault. Media Corp. will offer entertainment from its Fox Network and 20th Century Fox brands.

The combined offerings lineup could be something like this:

NBC Universal

• CNET.com
• NBC Entertainment
• Telemundo
• NBCU Sports & Olympics
• Bravo
• Chiller
• SciFi
• CNBC
• CNBC World
• MSNBC
• Shop NBC
• Mun2
• Sleuth
• USA
• History Channel
• History Channel Int'l
• Biography Channel
• Sundance Channel
• Telemundo Puerto Rico
• Universal HD
• NBCU Global
• CNBC Europe
• CNBC Asia
• Universal Studios

News Corp.

• Fox Television
• Fox Movie Channel
• Fox Sports Channel
• Speed
• Fuel
• Fox College Sports
• Fox Soccer Channel
• Fox Sports net
• Fox en Español
• FX
• National Geographic
• Blue Sky Studios
• Star

This deal will create the largest single block of video entertainment content on the net to date. The game has been ratcheted up another notch.

An hour or so ago, General Electric Company (NYSE:GE) unit NBC and News Corporation (NYSE:NWS) made flashing top-billed headlines throughout the world of journalism. "NBC, News Corp plan video site in challenge to Google's YouTube!" says the Wall Street Journal. "NBC and News Corp. to Create YouTube Rival," says the New York Times.

But on further investigation it's not clear how directly the two sites (NBC's is as-yet-unnamed) will compete. The NBC/News Corp partnership has an entirely different strategy than the user-generated flavor of YouTube. The announcement mentions that episodes of popular TV shows like 24, Heroes, and The Simpsons, as well as recently-released movies like Little Miss Sunshine will be distributed through the special NBC/News Corp online video player. What's more, internet portals (the real Google rivals) like Yahoo! Inc. (NASDAQ:YHOO), Microsoft Corporation (NASDAQ:MSFT)'s MSN and Time Warner Inc. (NYSE:TWX)'s AOL will be distributing this content and, if statements from the big three are any indication, creating their own to redistribute through the cozy network.

While I'm sure there is every intention of accepting (and, one would imagine, encouraging) user-created content, it seems to me that this is so far beside the point. This video portal is about controlling the distribution of (and gaining revenue from the ads placed against) the old media companies' proprietary content. It's if-you-can't-beat-em-join-em. It's smart! It's a well-orchestrated strategy. But it's not NBC vs. YouTube.