The new internet independents

Boy did yahoo ever buy a white elephant wrt flicker.
 
Meaning?
And what stifles internet based products in this country? The high cost of making it available to the world! It may be (relatively) dirt cheap to buy hardware, even here, but add the insane costs of making content available in SA and once again we're essentially locked out of another potentially lucrative tech segment!
 
martin said:
Please explain
Everyone is uploading all their photos and having all their friends/family/associates view them which costs real money wrt bandwidth and server space. Even in the states where bandwidth is relatively cheap as is hardware we're probably talking terabytes.

So how is Yahoo going to get a return on their investment? There're not showing ads and basic accounts are free.

Definition: White Elephant
 
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I don't agree. Their advertising revenues alone from flickr will more than make up for whatever they paid for flickr.
 
kingmonty said:
I don't agree. Their advertising revenues alone from flickr will more than make up for whatever they paid for flickr.
I dont see any ads - where are they?
 
Browse a couple of pictures. There's an "Ads by Yahoo" block on the left or sometimes on the right. You have any adblocking software installed?
 
kingmonty said:
Browse a couple of pictures. There's an "Ads by Yahoo" block on the left or sometimes on the right. You have any adblocking software installed?
Nope - I keep firefox clean just to make sure I can see ads if I want to.

Even if there is the occasional ad I dont see it generating the income necessary to sustain it. Perhaps it fits into yahoo's bigger picture wrt the whole social networking model and has value that way?
 
But just having the name Yahoo associated is a massive brand building exercise for Yahoo. Yahoos bigger picture wrt social networking is certainly a good reason behind the flickr buyout. That and the need to capture some sort of user community market that Google has gobbled up so well with blogging and the like.
 
bwana v.10 said:
Everyone is uploading all their photos and having all their friends/family/associates view them which costs real money wrt bandwidth and server space. Even in the states where bandwidth is relatively cheap as is hardware we're probably talking terabytes.

So how is Yahoo going to get a return on their investment? There're not showing ads and basic accounts are free.

Definition: White Elephant

Wow, www.last.fm has the exact same model (free basic account) and they just keep on growing (they've been around for 3 years). I doubt you've done your homework on this business model.
 
martin said:
Wow, www.last.fm has the exact same model (free basic account) and they just keep on growing (they've been around for 3 years). I doubt you've done your homework on this business model.
Wow - What business model are you on about?

Of course a site like that or flikr grows - they're free and offer a needed service but that doesnt change the fact that it needs to generate income to survive unless the owner is prepared to operate at a loss.

Yahoo is now saddled with funding flickr just as Audioscrobbler funds last.fm. The trick is discovering what yahoo has to gain by buying flickr.
 
bwana v.10 said:
Wow - What business model are you on about?
Offer free basic services, users subscribe for extra services or find alternative revenue streams (ads). Even Google employs this business model. I don't see them struggling financially.

bwana v.10 said:
Of course a site like that or flikr grows - they're free and offer a needed service but that doesnt change the fact that it needs to generate income to survive unless the owner is prepared to operate at a loss.
By grow I mean the company operating the website grows. last.fm have been hiring developers at the rate of one every two - three months for the last year. The company does not have a rich owner or backers so they must be doing okay for themselves.

bwana v.10 said:
Yahoo is now saddled with funding flickr just as Audioscrobbler funds last.fm. The trick is discovering what yahoo has to gain by buying flickr.
Audioscobbler does not fund last.fm. Audioscrobbler rebranded themselves as last.fm. They're one and the same company. They started out by offering services on two different websites: audioscrobbler logged your listening habits, last.fm provided you with a radio station based on those listening habits. They simply put everything in one place.

I still don't see how you can state that Yahoo has been saddled with Flickr. Do you have access to flickr's income statements, do you have proof that they're operating at a loss?
 
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You're right of course - I dont have access to flickr's income statements - perhaps you do? I'd welcome proof that they're operating at a profit instead of being cross-subsidized by Yahoo's other ventures. After all a company like Yahoo is reliant on the big picture (no pun intended:)).
 
After all a company like Yahoo is reliant on the big picture
The big picture changes - and after some time they will have a massive installed base - which can be "orientated" in any number of directions. Positive brand building - something companies in SA should try sometime.
 
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