Wednesday, May 27, 2009

Video Nemesis

Video has been the nemesis for online portal Yahoo!.

First of all there was the ludicrous near $10bn paid to Broadcast.com Back In The Day. Then the company's inability to come up with a coherent video offering as part of its portal, finally comes the news of mass lay-offs in its video division and the writing down of the $140m it paid for video management system Maven Networks.

The reality is that video and television look straightforward as businesses, but the reality is that they're far more complex than they seem.

Also, despite Yahoo! being in meltdown (surely it can only be a matter of time before Microsoft come back to the table with a much downwardly-revised bid), there are probably signs of a greater market malaise as revenue from video advertising continues to prove a challenging source of income.


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