Yahoo Follows Netflix, Amazon, Hulu Into TV Shows

YahooMIH83 / Pixabay

Following the success of Netflix, Inc. (NASDAQ:NFLX) original programming with the TV series House of Cards as well as Amazon.com, Inc. (NASDAQ:AMZN)’s entry into the market, Yahoo! Inc. (NASDAQ:YHOO) is following suit.

Ten shows being considered

According to a report in the Wall Street Journal, the search engine turned content development company is said to be considering ten half hour long shows and is willing to invest as much as several million in the project.

Yahoo’s change in strategy from short form programming

The report noted that Yahoo! Inc. (NASDAQ:YHOO) CEO Marissa Mayer is on the lookout for an online hit that has the potential to go viral.  As opposed to searching for short-form web programming, the move to hire writers, producers and directors for long-form programming to compete with networks and cable channels represents a shift in strategy.

“Blow it out big time”

“They want to blow it out big time,” one of the people briefed about the plans was quoted as saying.

The market for original programming is crowded and fraught with risk, despite the success of Netflix, Inc. (NASDAQ:NFLX).  Not only are Netflix and Amazon.com, Inc. (NASDAQ:AMZN) in the market, but Hulu also now creates content as do individual actors, such as the Zach Galifianakis talk show Between Two Ferns, which recently interviewed US President Barack Obama.

Don’t expect anything boldly different

Will the Yahoo! Inc. (NASDAQ:YHOO) offering be boldly different?  Don’t hold your breath.  “They’re looking at the same type of shows that Netflix and Amazon are eying,” a person familiar with the situation was quoted as saying.



About the Author

Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing a trading program’s strategy and mapping it to a market environment and performance driver. He provides analysis of managed futures investment performance and commentary regarding related managed futures market environment. A portfolio and industry consultant, he was an adjunct instructor in managed futures at Northwestern University / Chicago and has written or edited three books, including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008). Mark was director of the managed futures division at Alaron Trading until they were acquired by Peregrine Financial Group in 2009, where he was a registered associated person (National Futures Association NFA ID#: 0348336). Mark has also worked as a Commodity Trading Advisor himself, trading a short volatility options portfolio across the yield curve, and was an independent consultant to various broker dealers and futures exchanges, including OneChicago, the single stock futures exchange, and the Chicago Board of Trade. He is also Editor, Opalesque Futures Intelligence and Editor, Opalesque Futures Strategies. - Contact: Mmelin(at)valuewalk.com