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...that Semel needs to worry much these days. Yahoo! and other search engines have been on a roll. After years of uncertainty about the business model for Internet companies, online advertising revenues have taken off. Google, the biggest search engine, booked a 118% increase in total 2004 revenue, to $3.2 billion, and Yahoo! has kept pace, jumping 120% to $3.57 billion (thanks in part to acquisitions of Inktomi and Overture). Semel's turnaround story: the once money-losing dotcom has become a thriving real-world business, with 399 million unique users this January and some $840 million in profit last...
...Semel, 62, wants to take the next leap, building the mythical bridge between the Internet and the entertainment world by putting Yahoo!'s stamp on everything from music to movies. The ultimate tool: streaming video, which allows websites to deliver content--from movies and TV shows to live news footage, celebrity interview clips and even three-dimensional representations of new cars with simulated test drives. In addition to The Apprentice, Yahoo! already streams regular clips from Entertainment Tonight, and has done a deal to webcast the first episode of Kirstie Alley's Fat Actress later this month. It will also...
...Yahoo! is not the only engine searching for the content holy grail. The other major Internet companies--Google, AOL and MSN--all have their own strategies to capture more eyeballs for their sites. AOL (which, like this magazine, is owned by Time Warner) has worked with shows like Big Brother and Who Wants to Be a Millionaire? on advertising cross-promotions and last month announced it was talking to TV production houses about developing its own online content. Microsoft, though slower to embrace Hollywood, is putting its Encarta encyclopedia on its search site. Even Google, which says it is committed...
...Bros. into a highly profitable business, in part by ratcheting up movie-related merchandising and overseeing hits like ER and Friends on TV and movies like Batman, Chariots of Fire and The Matrix. He carefully maintains the connections he made at Warner, and though he now works out of Yahoo!'s Sunnyvale, Calif., headquarters in Silicon Valley during the week, his home is in Bel Air, where he flies every Friday evening to spend weekends with his family...
Semel's previous effort to put video online didn't fare well. In 2003 Yahoo! offered a service called Platinum, with a mix of ABC News, National Geographic and sports from CBS, for $9.95 a month. Consumer interest was so low that Platinum folded before the year was out. This time, Semel is sticking to an advertising-only model, at least for now. "Our primary business is advertising," he notes. "If we have the largest audience in the world, why won't that be a good business...