A New Yahoo! TV Strategy Could Pay Off Nicely

By focusing on half-hour comedy, CEO Mayer and her team may have found a way to set Yahoo! TV apart in a crowded field.

Tim Beyers
Tim Beyers
Apr 22, 2014 at 6:00PM
Consumer Goods

Yahoo! (NASDAQ:YHOO) is entering the crowded market for original online programming. Will the strategy pay off? Fool contributor Tim Beyers examines the prospects for a more expansive Yahoo! TV effort in the following video.

According to The Wall Street Journal, Yahoo! is aiming to produce a series of 10-episode half-hour sitcoms. That could be a great move, Tim says, especially when you consider that Netflix, HBO, and AMC Networks have spent so much producing award-winning dramas. Yahoo! could be catering to an underserved genre.

The timing is also interesting. CEO Marissa Mayer touted Yahoo!'s TV partnerships in her January keynote speech at CES, including an exclusive deal for online SNL clips. AMC, meanwhile, has only just begun to fund scripted comedy, while Netflix has high hopes, but no confirmed plans, for future seasons of Arrested Development. HBO's Veep and Silicon Valley stand out as the most likely rivals for new Yahoo! comedy programming, though Sony's Crackle has dipped its toe in the genre with Jerry Seinfeld's Comedians in Cars Getting Coffee.

Regardless of how the landscape evolves, what should matter to investors is that Yahoo! is expanding its footprint without playing the copycat. Tim says that should yield benefits.

Now it's your turn to weigh in. What do you think of Yahoo!'s TV strategy? Will you be tuning in when the network launches new programs? Please watch the video to get the full story, and then leave a comment to let us know your take, including whether you would buy, sell, or short Yahoo! stock at current prices.