Yahoo! We’re Back In The Internet Business!

Today’s New York Times (registration required) offers an analysis of Yahoo’s shift in strategy from creating original content to leveraging branded and consumer generated content.  There was much consternation among Yahoo-watchers last year when the company hired Lloyd Braun, a TV guy, to run Yahoo’s Media Group.  Given Terry Semel’s Hollywood background, it was a natural concern.  Braun has a number of interesting quotes in the article, but perhaps the most telling is: 

"Embracing things like blogs and sharing of content between individuals" is at least as important as "coming up with the next mega-online event," he said. "The Internet is such a niche content environment that the broadcast model does not really work."

It would appear that Yahoo recognized the golden egg they’re sitting on (400m + Internet users) and decided to “stay in the lane their in” – as opposed to building an original content company.  The usual suspects have commented on this (Jeff Jarvis, Steve Rubel, Fred Wilson, Henry Blodgett, GMSV, etc.) and there’s not a lot to add.  Except, perhaps, to question the long-term role of advertising in the business model.  In a world where users are creating their own media and mechanisms for engaging with each other, what is the tolerance for advertising?  Are there other ways of monetizing these interactions and activities?  Or do these businesses need to figure out other ways to make money?
 
Remembering where Jerry Yang and crew started over a decade ago, you have to say that Yahoo has come a long way baby.  The interesting question is: where is it going?

 
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New Media, Search, Web2.0, Yahoo!