Yahoo! Inc. (NASDAQ: YHOO) has shut down Yahoo Screen, the online video portal that was the key of CEO Marissa Mayer’s video strategy. Yahoo used to spend more than $100 million producing its own shows, excluding the employee salary. Ms. Mayer hoped to bring in premium advertising to Yahoo Screen. But it failed to attract many customers or create a meaningful source of revenue.
According to Variety, an anonymous Yahoo representative said, "At Yahoo, we’re constantly reviewing and iterating on our products as we strive to create the best user experience. With that in mind, video content from Yahoo as well as our partners has been transitioned from Yahoo Screen to our Digital Magazine properties so users can discover complementary content in one place."
Yahoo is now leading visitors from Screen to its home page, and the company has moved all of its online videos to another related sites, such as Yahoo TV and Yahoo Music.
After Yahoo Screen shuts down, it is not surprised that the company lower $42 million in operate expenses for video series, including a one-season revival of the television show “Community” which alone may have cost up to $35 million to produce.
Yahoo Screen may be the first casualty in a broader restructuring underway at Yahoo, where Chief Executive Marissa Mayer has promised to refocus the company’s efforts on fewer areas in the wake of disappointing results and growing pressure from investors.
Marissa Mayer is also struggling to keep up employee morale and prevent an exodus of top executives. At least two executives overseeing the company’s online video efforts — former marketing chief Kathy Savitt and former content-partnerships head Lisa Licht–departed the company in recent months.