Yahoo is claiming that its media group is performing well, with traffic to their news, games, and music sites all leading their categories. And Yahoo movies aren't far behind. Yahoo also succeeded in achieving their internal financial targets last year, however this was only after the figures received a downward revision. Meanwhile their business rivals, in the form of Google and AOL, have been coming on strong.
With Yahoo's margins taking a beating as more of the large media companies decide to take control of their own online presence rather than handing their customer delivery over to the internet companies, the focus for Yahoo is now turning towards a more technology driven product, buying various on-line community start-up firms.
The gap left by Yahoo has been quickly filled by Yahoo's competitors as Google, along with CBS, present hit shows such as Survivor and the Chris Rock based comedy, Everybody Hates Chris, to drive millions of users to its site. Also, AOL is has provided exclusive online coverage of the Live 8 concerts as well as new reality programme offerings.
Lloyd Braun, who is currently running the Yahoo media outfit, stated that it will continue to compete for the large content deals but only if it can add value: "It's not just about bringing people to the site, it's about keeping them engaged, enticing them to share and create their own content, and making sure they come back".
As Yahoo appears reticent to assertively pursue outside content and many big brand advertisers are looking to shift more of their spending to the internet, MSN is looking to pick up the slack by streaming video ads.
Yahoo is not out for the count however. While Google set up strategic partnerships to help deliver quality content for the Olympics, Yahoo set up its own Olympics site with community generated content, its own exclusive news reports and columns, and expanded on its Flickr photo sharing service.
Rivals like AOL are rushing in to market new online reality programme concepts to potential advertisers, while Yahoo is being more cautious, citing that they are waiting for the right concept to emerge before they forge ahead. Who will win this battle of the content providers: the tortoise of the hare?
