But he said Yahoo's prospects are bright for creating alternate revenue streams such as subscription fees, though they will likely be marginal for the next few years. What they're likely talking about there are value-added services related to music on the Web, enhanced research tools and message boards, and even some proprietary content that they'd hope to secure and distribute. Currently, less than 10 percent of Yahoo's overall revenues come from areas on its service that charge fees for usage. The company also has payment options for some of its bill-paying services. This could be the tip of the iceberg for Yahoo, which may move into new areas such as charging subscriptions for a bundle of premium services and content.
Subscriptions sound good on paper.
They allow companies to rely less heavily on tenuous advertising deals and provide a steady stream of cash. The glut of financial information online made paying for it seem less appealing, as start-up sites such as CBS MarketWatch and online versions of popular publications such as The Wall Street Journal or Business Week have made financial news a commodity. On Thursday, TheStreet said it would slash about 100 jobs, a move that will cut 20 percent of its U.S. work force and mean the closure of its U.K. office. The challenge in charging for content is convincing Web users that they should plunk down their credit cards to access certain areas on sites. Net users are accustomed to surfing a free Web, with the exception of AOL users, who pay a monthly fee for Internet access and content.