Yahoo’s push into original content, spearheaded by its pickup of the Dan Harmon comedy “Community” for a sixth season, turned out to be a financial bust for for the former giant of the search engine world.
THR reports that the company took a $42 million write-down in its video division during the third quarter. CFO Ken Goldman revealed the news during a recent earnings call and later explained that original comedy series “Community,” “Sin City Saints” and “Other Space” were to blame as they couldn’t see a way to make money over time.
Former CMO Kathy Savitt, who has since moved to STX Entertainment, spearheaded a push to compete with streamers like Netflix and Amazon by buying a small slate of original TV-length series anchored by “Community”. All three shows premiered this Spring but generated little buzz while star Joel McHale admitted a few months ago that all the cast’s contracts are up so there “is just not enough money to be able to pay for the show” anymore.
While the company says it is keeping the door open for future projects, don’t hold your breath for any more big pushes into the original content arena by Yahoo in the near future.