Yahoo! To Remove Sex Videos and Ads from Network

SANTA CLARA, Calif. — Yahoo! Inc. announced that it will remove sex-related videos from three areas of its U.S. Web-site network and said it won’t sign any new contracts for adult-related advertisements.

Two days after the Internet company acknowledged that it expanded and refashioned an adult Web store for such videos and other adult materials, Yahoo (YHOO) on Friday said it will remove the videos and DVDs from Yahoo Shopping (, Yahoo Auctions (, and Yahoo Classifieds (

In addition, the company won’t enter into new contracts for sex-related banner ads on its network. The changes will be made over the next few weeks.

“While Yahoo has offered controlled access to adult products available via the Internet since launching our commerce services more than two years ago, many of our users voiced concerns this week about some of the products sold by merchants on Yahoo Shopping,” Jeff Mallett, Yahoo’s president and chief operating officer, said in a written statement. “We heard them and swiftly responded.”

Yahoo’s move to expand its adult-product business was made during the winter holiday season. Some analysts view the move as a bid to boost revenue from areas outside of online advertising and shore up itssagging bottom line.

Yahoo doesn’t disclose how much revenue it gets from its revamped adult store, which was discussed in an article Wednesday by the Los Angeles Times. An analyst at Jefferies& Co. estimates that the company derives 15% to 25% of its revenue from e-commerce, with adult-related sales probably accounting for a small percentage of that.

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