CEO Marissa Mayer, with hopes of generating greater profit, made the decision to pull out an online video hub that aimed to share the limelight with Netflix and YouTube. Yahoo ended the Yahoo Screen because it never attracted the same number of audiences as that of the other two mentioned video sites.
Mayer overhauled the Yahoo Screen 16 months ago, making it mobile-friendly and filling it with thousands of clips from NBC's "Saturday Night Live" and other popular TV shows.
"We're constantly reviewing and iterating on our products as we strive to create the best user experience," Yahoo said in a printed statement.
Yahoo telegraphed that its video expansion was failing in October, disclosing that a $42-million that has been accounted for original shows had flopped.
Mayer is yet to provide a more detailed and concrete steps. Yahoo, furthermore, has yet to release its fourth-quarter results.
Meanwhile, a BBC report has stated that, according to ComScore, US visitors to the site declined by 28% between October 2013 and October 2015, despite the addition of popular and trending shows. Thus, it could be seen that this move appears to be an integral part of Mayer's plan to "eliminate technologies that were costing more money then they were earning."
According to Seattle Times, "shares of Yahoo have fallen by about 35 percent since the end of 2014 as the difficulty of reviving company revenue growth has become evident, and that has increased the pressure on Mayer to take more drastic measures." Calls for the sale of its online operations were visible; however, Mayer and the company's board have refused to give in to those demands as of present time.
Yahoo has been struggling for years in terms of turning the millions of visitors into revenue machines. However, this has been unsuccessful, so to speak.
To help, Yahoo is planning on making another business for their non-Internet related business lines.
Mayer became Yahoo's CEO three and a half years ago.
