Yahoo ends its paid video service
In news that should come as no shock to those who regularly read this blog, Yahoo is reported to be dumping its paid video service. According to Reuters, outsiders briefed on Yahoo’s plans said the move reflects a broader shift away from a pure subscription model for Web video to one in which it is supported by a combination of advertising and other fees, such as broadband access. There are still many companies (ABC, RealNetworks) that cling to a subscription model for video and other content on the Web, and there will likely always be a limited market for such. But the advertiser-supported MSN Video concept announced just a few weeks ago is causing everybody to take a second look at the idea of paid content. In the video on demand world into which we’re headed, the market will determine what we’ll pay for and what we won’t, just as it does today. I think the idea of paying individual Web sites for their content will eventually give way to ISP-driven models. I don’t pay HBO directly. Why should I pay Yahoo? Moreover, it is newspapers, with their history of a subscription revenue base, that insist users will pay a subscriber fee for their online content. Television stations (and Networks), who’ve grown up with an entirely advertiser-driven revenue model, have long been envious of their print counterparts, but the truth is THEY are in the driver’s seat when it comes to online video, because they must know advertisers will pay to be a part of it.

This entry was posted on Friday, October 31st, 2003 at 9:34 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.