“Google has done a better job than us,” says Yahoo Chairman Terry Semel |
Yahoo is citing paying subscribers as a key revenue increase source and that’s no surprise considering how Y! Music came onto the scene and cut out the knees of their competition with their introductory price plan.
Truthful to the word ‘introductory’ though, they did eventually raise the price, strangely to about the time — five months — Steve Jobs predicted they would. We went back to Napster and started a subscription to LAUNCHcast instead. I wonder how many others no longer found Y! Music such a great deal once the price nearly doubled? Also, I hope they made the cancellation process more friendly.
paidcontent quotes the numbers:
Fees revenue was up 35 percent for the quarter as the number of fee relationships paying relationships rose to 12.6 million, up 1.2 million or 11 percent over the previous quarter, and 4.2 million or 50 percent over 4Q04. (Yahoo Music debuted in 2Q05 but it’s hard to draw conclusions about the actual number of music subs.)
Perhaps the oddest quote coming out of the various news accounts of Yahoo stock (YHOO pictured above) was on Yahoo News, part of an AP story quoting Terry Semel, Yahoo chairman:
Although Yahoo’s profits have been steadily rising in recent years, the company still hasn’t been able to come up with a formula that’s as effective at serving up moneymaking ads as Google, its biggest rival. “Frankly, Google has done a better job than us,” Yahoo Chairman Terry Semel acknowledged during a Tuesday interview.
The article notes that YHOO share prices gained 21 cents and then dropped $5.40 (13.5%) in extended trading. As of this writing, things haven’t yet bounced back.
What did I do with my portfolio of Yahoo stock? Bought more.
Generally speaking I like what Yahoo has done over the last year, adding additional specialized search engines, reaching out to developers with some really good APIs, and buying vibrant properties like Flickr. I also bought more Google and Apple stock. I don’t believe the tipping point has been reached for any of these stocks, including Yahoo.
Did this post make you go hmm?
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[…] As if it wasn’t bad enough that Terry Semel conceded Google had done a better job, now Yahoo Chief Financial Officer, Susan Decker is going a step further, saying: “It’s not our goal to be No. 1 in Internet search. We would be very happy to maintain our market share.” […]
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