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September 13, 2004

Yahoo Consumer Electronics (UPDATE)

Last week I commented on a story by Engadget that Yahoo was going into the consumer electronics business. At the time, I couldn't understand why Yahoo would want to do that sort of thing.

According to theunofficialyahooweblog, it's just a brand licensing deal by another manufacturer.

Believe it or not, this is fairly common these days. It provides additional revenue to the licensor and increases it's brand awareness. For the licensee, you can add credibility to your product line by selling it under an established brand. The downside for the licensor is if the product turns out to be junk then it could do more harm than good for the brand.

It makes a lot more sense to me now.

Posted on September 13, 2004

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