Yahoo kills online video hub Screen
Yahoo Inc. pulled the plug on an online video hub that once had been envisioned as the company’s answer to Netflix and YouTube.
The end of Yahoo Screen is part of a purge being directed by Chief Executive Marissa Mayer with hopes of generating greater profit elsewhere.
Mayer oversaw an overhaul of Yahoo Screen 16 months ago that came in the form of a new mobile application, thousands of clips from NBC’s “Saturday Night Live” and a wide variety of other popular TV shows.
But Yahoo Screen never attracted the vast audiences that flock to Netflix and YouTube.
Yahoo is now scattering its video across its digital magazines and other services, such as Yahoo Music.
“We’re constantly reviewing and iterating on our products as we strive to create the best user experience,” the Sunnyvale, Calif., company said in a statement.
Mayer has pledged to jettison technology that fails to justify the amount of money that Yahoo has been investing in it.
Yahoo telegraphed that its video expansion was faltering in October when it disclosed a $42-million charge to account for original shows, such as “Community,” that had f lopped.
Mayer is expected to provide more details about her latest plans for reorganization in about three weeks when the company announces its fourth-quarter results.
Industry analysts are expecting the steepest decline in Yahoo’s revenue, after subtracting ad commissions, since the company hired Mayer away from Google, making her its CEO, 31⁄2 years ago.
Shares of Yahoo have fallen about 35% since the end of 2014 as the difficulty of reviving company revenue growth has become evident, and that has increased the pressure on Mayer to take more drastic measures. There have even been calls for Yahoo to sell all of its online operations, but Mayer and the company’s board have rebuffed those demands.
By building a compelling video hub, Mayer had hoped to attract advertising away from Google Inc., whose operations include YouTube, and social networking leader Facebook, which also boasts millions of clips shared by its users.
Yahoo’s stock rose 80 cents, or 2.6%, to close Tuesday at $32.20.