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(Continued)     The RFS Newsletter, Nov. 19, 2005. Page 3
Yahoo wants to increase its fight against Google, and is now focussing on social media, a phenomenon that allows users to create their own entertainment and share it with anyone else. Yahoo's conversion to social media was largely caused by its March acquisition of Flickr, a rapidly-growing photo-sharing site. Flickr has 1.5 million users, who have uploaded more than 60 million photos to the site. Some 80 percent of those photos are public, meaning that anyone can look at them, and more than half have been "tagged" with user-created labels, making them searchable. To use Flickr is to belong to the culture of participation sweeping the Web -- where you write your own blog, produce your own podcast, and post your personal photos for all to see.

For new parent Yahoo, Flickr has helped ignite a larger strategy by providing it with fresh insights into how it might leverage its existing relationships with its 191 million registered users. What would happen if Yahoo could form deep, lasting, Flickr-like bonds with all its users -- and get them to apply tags not just to photos, but to the entire Web? For one thing, the company could make a lot more money. More rabid users mean more ads and more premium subscriptions such as Flickr Pro, whose users pay $25 a year to take their photo-uploading allowance from 20 megabytes to 2 gigabytes a month.

<<< Pr. page     Next: User fees account for 13 percent of Yahoo's revenues >>>

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