Yahoo 2005 Annual Report Download - page 34

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pages. As a result, advertisement-blocking technology could reduce the number of advertisements and
search results that we are able to deliver and, in turn, our advertising revenues and operating results.
We rely on third party providers for our principal Internet connections and technologies, databases and services
critical to our properties and services, and any errors, failures or disruption in the services provided by these third
parties could significantly harm our business and operating results.
We rely on private third-party providers for our principal Internet connections, co-location of a significant
portion of our data servers and network access. Any disruption, from natural disasters, technology
malfunctions, sabotage or other factors, in the Internet or network access or co-location services provided
by these third-party providers or any failure of these third-party providers to handle current or higher
volumes of use could significantly harm our business, operating results and financial condition. We have
little control over these third-party providers, which increases our vulnerability to disruptions or problems
with their services. Any financial difficulties experienced by our providers may have negative effects on
our business, the nature and extent of which we cannot predict. We license technology and related
databases from third parties for certain elements of our properties, including, among others, technology
underlying the delivery of news, stock quotes and current financial information, chat services, street
mapping and telephone listings, streaming capabilities and similar services. We have experienced and
expect to continue to experience interruptions and delays in service and availability for such elements. We
also rely on a third-party provider for key components of our e-mail service. Furthermore, we depend on
hardware and software suppliers for prompt delivery, installation and service of servers and other
equipment to deliver our services. Any errors, failures, interruptions or delays experienced in connection
with these third-party technologies and information services could negatively impact our relationship with
users and adversely affect our brand, our business and operating results.
We rely on distribution agreements and relationships with various third parties, and any failure to obtain or
maintain such distribution relationships on reasonable terms could impair our ability to fully execute our
business plan.
In addition to our relationships with Internet access providers, to increase traffic for our offerings and
make them more available and attractive to advertisers and users, we have certain distribution agreements
and informal relationships with operators of online networks and leading websites, software companies,
electronics companies, and computer manufacturers. Depending on the distributor and the agreement,
these distribution arrangements may not be exclusive and may only have a short term. Some of our
distributors, particularly distributors who are also competitors or potential competitors, may not renew
their distribution agreements with us. In addition, as new methods for accessing the Internet become
available, including through alternative devices, we may need to enter into amended distributions
agreements with existing distributors to cover the new devices and agreements with additional distributors.
In the future, existing and potential distributors may not offer distribution of our properties and services to
us on reasonable terms, or at all. If we fail to obtain distribution or to obtain distribution on terms that are
reasonable, we may not be able to fully execute our business plan.
We rely on third party providers of streaming media products to stream audio and video content to our users, and
any change in the licensing terms, costs, availability or user acceptance of these products could adversely affect
our business.
We rely on leading providers of streaming media products to license the software necessary to stream
audio and video content to our users. There can be no assurance that these providers will continue to
license these products to us on reasonable terms, or at all. Our users are currently able to electronically
download copies of the software to play streaming media free of charge, but providers of streaming media
products may begin charging users for copies of their player software or otherwise change their business