Friday, May 14, 2004
Yahoo! blasts back at Google | The Register: "Yahoo! blasts back at Google
By Andrew Orlowski in San Francisco
Published Friday 14th May 2004 08:37 GMT
Yahoo! used its annual financial analyst day to announce an expanded email service. With Google's beta GMail service grabbing so much attention, Yahoo! will expand the amount of free storage to 100MB per user over the summer, and a rather vague promise of 'unlimited' storage for paid users. GMail will offer 1GB of storage and a vastly superior search capability. 100 MB of storage in Yahoo! Mail currently costs $49 a year.
In response to privacy concerns, Google has said it will consider offering a pay-for version of GMail without the spybots. But Google often says it will consider doing something that it has no intention of doing, and never does. Yahoo! indulged in some bluffing of its own for Wall Street's benefit. The company says it intends to increase the number of subscribers, currently just below 6m, to 15m, a revised long-term target.
The portal has nevertheless bounded along in the past year. Its advertising business netted $418m in most recent quarter, up 120 per cent on the corresponding quarter in 2003 and the lion's share of Yahoo!'s revenue. Gross profit for the first quarter of 2004 was $476m, almost doubling the $240m for the same quarter a year ago. In the same quarter Google earned $389.6m, most of which came from advertising. Google is growing faster, but has warned that 60 plus per cent margins will erode. Significantly, because of its more diversified revenue base, including such ventures as broadband ISP partnerships, Yahoo!'s income costs more..."
By Andrew Orlowski in San Francisco
Published Friday 14th May 2004 08:37 GMT
Yahoo! used its annual financial analyst day to announce an expanded email service. With Google's beta GMail service grabbing so much attention, Yahoo! will expand the amount of free storage to 100MB per user over the summer, and a rather vague promise of 'unlimited' storage for paid users. GMail will offer 1GB of storage and a vastly superior search capability. 100 MB of storage in Yahoo! Mail currently costs $49 a year.
In response to privacy concerns, Google has said it will consider offering a pay-for version of GMail without the spybots. But Google often says it will consider doing something that it has no intention of doing, and never does. Yahoo! indulged in some bluffing of its own for Wall Street's benefit. The company says it intends to increase the number of subscribers, currently just below 6m, to 15m, a revised long-term target.
The portal has nevertheless bounded along in the past year. Its advertising business netted $418m in most recent quarter, up 120 per cent on the corresponding quarter in 2003 and the lion's share of Yahoo!'s revenue. Gross profit for the first quarter of 2004 was $476m, almost doubling the $240m for the same quarter a year ago. In the same quarter Google earned $389.6m, most of which came from advertising. Google is growing faster, but has warned that 60 plus per cent margins will erode. Significantly, because of its more diversified revenue base, including such ventures as broadband ISP partnerships, Yahoo!'s income costs more..."
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