Startup chases shareware cut

By MICHAEL FOREMAN

A local internet startup called Yippee has launched a bid to capture a slice of the United States-dominated shareware market.

Yippee's site went live late last week offering more than 3000 shareware programs ranging from games to internet utilities. The site features free software as well as trial versions of programs that expire after a time unless a fee is paid.

Shareware is free to download but it is not always free to keep, explained Yippee hosting and e-com manager Damian Douwes.

Yippee hopes that users will be attracted by the site's simple interface, which requires a maximum of three clicks to download a program, and honest reviews.

Yippee's reviews rate programs with between one and five beach balls.

But while Yippee will provide a free service, its motives are not altruistic.

Mr Douwes says that downloading shareware has become one of the most popular uses of the internet but is an area dominated by US players such as Tucows and download.com.

Tucows, the top shareware site, attracts more than 100 million visitors a month - and increasing internet advertising revenue, estimated to be worth $US4.8 billion ($10.2 billion) this year.

While Yippee is New Zealand owned and operated, Mr Douwes says it will be global in scope.

The site is initially hosted at a server in Auckland but Yippee plans to establish between 25 and 40 overseas mirrors that will hold exact copies of the shareware catalogue, updated daily.

Companies that host the mirror sites - mainly internet service providers - will be offered a share of advertising revenue.

Mr Douwes says Yippee may offer the site to local providers as well, but only after setting up an international network of mirrors.

He is confident that Yippee will attract 2.5 million users by the end of next month and hopes that number will double each month thereafter. Eventually, he expects 10 to 40 million visitors a month.

Yippee has already picked up more than 25 local advertisers, including an online travel agent, two recruitment agencies and restaurants.

One of the biggest problems with the internet is that most New Zealanders are seeing United States advertisements, says Mr Douwes.

Users who click on these banners are often told that the product is not available outside the US.

Yippee has linked with the Sabela ad server to provide New Zealand advertising.


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