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There was a lot of exploitation of Club Live. Some of it had been factored in as a cost of doing business but it wouldn't surprise me if they underestimated it.

Overall, Club Live was a brilliant strategy. Despite horrible execution it still succeeded in ratcheting up the pressure on Yahoo by demonstrating that MS was willing to buy market share. With minimal cash reserves and no product of its own to put through the channel there was no way for Yahoo to compete. There sure were a lot of things they could have done better though.



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