Yahoo! halves! domain! prices!

Loss leader

Yahoo! has halved its domain name charges from $9.95 to $4.98 a year up until the end of the 2004. The offer is limited to one domain per customer.

Netcraft reports that Yahoo's price offer undercuts previous budget leader 1&1 Internet by nearly a dollar. 1&1 Internet operates its own ICANN-accredited registry, but Yahoo! is only a reseller for Australian domain name registry Melbourne IT. Netcraft reckons Yahoo! is selling the domain at a loss of at least $1.50 per domain in order to expand its share of the shared-hosting market.

Last month, Interland gained 132,000 small business domains after dropping its domain name pricing to $7.95 a year. Netcraft reckons Yahoo!'s aggressive price promo is a response to Interland's offer and a continuation of a pricing war between hosting companies. ®

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