Yahoo cans streaming video
Published: 31 Oct 2003 11:50 GMT
Yahoo is expected to stop selling its streaming-video service as a stand-alone product within the next few weeks, according to sources familiar with the plan, raising new questions about the viability of charging for television-like content over the Net.
Launched in February, Yahoo Platinum charges Web surfers $9.95 (£5.85) a month for access to streamed video clips of content such as ABC News or CBS' "Survivor".
The service will eventually find a home in Yahoo Plus, a premium-services bundle that's been in the works for the past year and is expected to launch as soon as next month, sources said. Yahoo is also expected to expand free video programming throughout its site and offer it as a perk for its broadband access partnerships with SBC Communications and British Telecom.
A Yahoo spokeswoman declined to comment specifically on future changes for Platinum. However, she pointed out that the company's broadband offerings will continue to change.
"Yahoo is committed to being a leader in providing broadband content," spokeswoman Joanna Stevens said. "How it's packaged, priced and presented will evolve over time."
The possibility of offering free video streams comes amid signs of a broader attitude shift among content companies, Web networks and advertisers. Some content companies once militant about charging people for their video are becoming more open-minded.
"It's not that (consumers) won't ever pay for it," said one source from a content company, who spoke under the condition of anonymity. "But the jury is still out. Other companies will try a method of giving (video) away for free to see if they can offset costs through advertising."
The launch of Yahoo Plus comes as the company's main rivals, America Online and MSN, are positioning their services in a similar fashion. In response to a decline in the number of dial-up subscribers, AOL and MSN are trying to sell their online software to existing broadband users in hopes of retaining customers who have defected to cable and DSL providers.
Microsoft recently announced plans to launch a free service next year called MSN Video, which will offer advertising-supported news and entertainment clips.
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