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I'm a big fan of Brickhouse, the division in Yahoo! charged with creating new services for Yahoo! the way a startup would. But I think their strategy so far has been to create services that they see a lot of interest in, from the web in general. That's not the right way to do things as a startup. If they really want to approach it like a startup, they need to ask, "What problems do Yahoo! users have, that we can solve?"
Yahoo! Live didn't solve a problem. None of their social network attempts solved a problem. Yahoo! Music and Yahoo! Auctions didn't solve problems that weren't already solved better by other companies.
Yahoo! has a huge userbase. Surely there are segments that have problems that Yahoo! can solve better than anyone else.
** Sob ** Bye Justin. LOL
The fun part for people is that now they can easily apply whatever rich media they want within their social networks – text, audio or video. And they can easily choose to interact with people they know or with people they don’t with these new tools. These are powerful new choices that consumers are beginning to apply broadly within their lives.
In this sense, the video streaming space is no more a niche than Skype is a niche. I won’t speculate why Yahoo shut this down – but it can not be because the market is too small. Smart companies, like Paltalk are doing a fine job of monetizing streaming video (see article http://www.alleyinsider.com/2008/10/seesmic-vs-...) so why Yahoo couldn’t make it work is anybody’s guess.
Judy Shapiro
VP, Marketing Paltalk