Tuesday, March 01, 2005

YAHOO MAKES BIG BET ON MEDIA

IN HUNT FOR ONLINE ADVERTISING, YAHOO MAKES BIG BET ON MEDIA
Under the leadership of Terry Semel, a former movie executive, Yahoo is
taking its cue from the entertainment industry. It believes its future
largely lies in building the equivalent of online theme parks featuring
fantasy sports leagues, music, sites for new TV shows such as "The
Apprentice" and other branded content and services. Yahoo wants users to
come often and stay a long time so it can put more and more ads on their
screens. Google devotes its energies primarily to thriving on the Web's
vast sprawl rather than trying to occupy one corner of it. Half of Google's
advertising revenue, for example, comes from simple text ads that appear on
other people's Web sites. The other half comes mainly from ads that
accompany Google's own search results. Google produces virtually no content
of its own, fearing that would tarnish the impartiality of its search
service. "Yahoo sees itself as a media company," says Shelby Bonnie,
chairman and CEO of technology Web publisher CNET. "Google views itself as
a technology company."
[SOURCE: Wall Street Journal, AUTHOR: Kevin J. Delaney kevin.delaney@wsj.com]
http://online.wsj.com/article/0,,SB110963221790466352,00.html?mod=todays_us_page_one
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