Yahoo! is headed for some re-organizing in the New Year. Following a $42 million write-off on original video content, the online powerhouse has confirmed that its video portal, Yahoo Screen, has been shut down.
While Yahoo Screen did not reach nearly the amount of viewers as has YouTube, it still had a large enough audience to justify uploading content. The service was known for showing licensed reruns of “Saturday Night Live”, live-streamed concerts from Live Nation, digital magazines, and much more. Now, instead of a one-stop location for viewers, videos are scattered throughout Yahoo Music and Yahoo TV.
Brian Wieser, an analyst at Pivotal Research believes that this move reflects Yahoo’s “shrinking video ambitions”. He also says that the company will probably focus more of its efforts on creating cheap videos for its digital magazines than on trying to land big-budget placements. While Wieser doesn’t believe they will produce less content, he does believe that “They will have less expensive video”.
Music Supervisors for Yahoo will certainly have a change in tasks this year. Instead of eyeing up large acts for “big bucks” placements, the less expensive videos will target stock music or very low budget indie music. It may appear that a minor act from a less renowned media producer is not a trend at all, but we are going to be keeping our eyes peeled for more potential moves like this.
To read more about Yahoo's latest move, check out the article on NYT.