News Corp president Peter Chernin said in a statement: "This is a game changer for internet video. We will have access to just about the entire US internet audience at launch."
The service will include ad-funded episodes and clips from hit NBC and Fox shows such as 24 and The Simpsons. Cadbury Schweppes, Cisco Systems and Intel have already signed advertising deals.
News Corp and NBC have negotiated deals to provide video to some of Google's biggest online rivals, including Yahoo, AOL and Microsoft. The site will also work in partnership with News Corp-owned MySpace.
"For the first time, consumers will get what they want: professionally produced video delivered on the sites where they live," said Chernin.
Peter Levinsohn, president of Fox Interactive Media, said recently that the site does not aim to be a "YouTube killer". But he added that if it is, "My Space will be a huge beneficiary".
The new site has reportedly discussed content deals with broadcast giant Viacom, which last week filed a £550M (A$1.3M) suit against Google-owned YouTube for copyright infringement.
Over 133 million people visited YouTube in January, 14 times more than a year earlier.
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