Yahoo! Inc., on Wednesday, said that it has expanded its distribution agreement with Verizon Communications Inc., to provide Yahoo search and related services to internet subscribers of Verizon, which would appear as a homepage for new Verizon FIOS and high-speed Internet customers.
This is one of many strategic alliances that will make a Verizon-Yahoo portal the “preferred starting point” for all customers, which the Internet company hopes will draw more eyeballs to Yahoo properties and help sell more Internet advertising to jump-start growth.
The Yahoo deal covers Verizon’s broadband Internet customers, and users should now be prepared to see a lot of Yahoo logos all day, every day; the telecom company reportedly is working on a deal with Google for mobile subscribers.
Under the new multi-year deal that replaces a similar arrangement the companies had in place since 2005, with a customizable Verizon-Yahoo Web portal would be offered as a first choice for all of Verizon’s new FiOS broadband Internet customers.
Sunnyvale, California-based Yahoo said users who sign up for high-speed Internet service with Verizon will be able to select a start page of a co-branded Verizon-Yahoo homepage, or “portal,” that features Yahoo’s e-mail, instant messenger and toolbar applications along with search and display advertising.
Other special features include a “Customizable Personal Assistant” (for stuff like email, horoscopes, and weather) and “Top Picks from Your Page” (a news-centric module).
Users can also choose to use services from Microsoft Corp. or Time Warner Inc.’s AOL. But Yahoo will be the first option on the list under the new agreement. Verizon said Yahoo earned the top position, previously held by Microsoft, based on the revenue it generated and shared with Verizon.
Jim Schinella, senior vice president, corporate partnerships, Yahoo! Said, “Our new multi-year agreement offers greater choices for consumers while enabling both companies to unlock greater monetization opportunities to the company in the long term as the online-advertising market grows.”
A recent news articles have reported that Verizon Wireless is also close to striking a deal with Google on mobile search and advertising. Yahoo also offers mobile search and advertising products that Verizon Wireless could use as well. AT&T, which has a similar broadband portal arrangement with Yahoo that Verizon has, also has chosen Yahoo as one of its mobile partners.
So far Verizon Wireless has not yet announced any kind of arrangement with Google, though it will be interesting to see if Yahoo can parlay its broadband deal into anything for mobile. Yahoo has a strong portfolio in mobile and it has done well so far in the mobile market. Like Google, it has adapted some of its traditional Web services, like search, for the mobile market.
The deal between Verizon and Yahoo appears to only cover Verizon’s wired broadband services. The companies made no mention of a deal that included services for Verizon Wireless, which is jointly owned by European carrier Vodafone and Verizon Communications.
The companies did not disclose financial details or the length of the agreement.