Yahoo Funks Up Messaging

Yahoo is jazzing up its instant messaging software, Yahoo Messenger, with animated graphics, video clips, and music. Now when you swap messages with buddies using the latest release of the software client, you can send an animated likeness of actor Will Smith uttering various canned phrases, including: "So what's up? You all right?"

The revamped multimedia Yahoo Messenger 5.0 client, available now, features a selection of 13 different themes, called IMVironments, that let you customize your chatting. All themes include animated images superimposed in the background, and they range from Dilbert characters to the rock band Garbage to a fish tank.

For example, the Garbage Yahoo Messenger theme displays an image montage of band members and lets you play its latest single, "Androgyny," inside the messaging client software. Another theme, called Fishtank, wallpapers the background of your chat window with an underwater scene including animated fish swimming back and forth.

Boosting Buddies

The enhancements are a clear attempt by the Internet company to draw more users to its instant messaging client and create new ways to make money. At Messenger 5.0's launch, Yahoo has signed about six marketing agreements with companies including Nintendo of America, Dilbert, and Peanuts. Each partner has a themed Yahoo Messenger client, and many have hyperlinks to Web sites with products for sale.

"No one has ever integrated audio, video, graphics into the instant messaging window," says Lisa Pollock, director of messaging products for Yahoo. "We are constantly trying to innovate, listen to our users, and be ahead of the curve."

Yahoo last updated its instant messaging client only four months ago with the release of version 4.5, which also moved toward multimedia functions by adding video support for Web cams.

The Yahoo Messenger release comes on the heels of similar news from its primary rivals. America Online just updated its client interface to AOL 7.0 last week. Within a day, Microsoft updated its MSN interface to Release 7 as well. Both announced new versions of their instant messaging software along with updates to their network interfaces.

Chat Volume Rises

Yahoo Messenger appears to be holding firm as the third most popular instant messaging client. Market researchers say Yahoo Messenger's U.S. customer base is growing faster than that of America Online.

During September, 28 million customers used America Online's AOL Instant Messaging client in the United States, according to Jupiter Media Metrix. Microsoft's MSN Messenger service had 20.7 million unique users, and Yahoo Messenger weighed in with 14.3 million.

Media Metrix estimates Yahoo's user base has grown by 19 percent (2.3 million users) over the past seven months. AOL grew by 10 percent (2.5 million users) during the same time. Microsoft saw the biggest gains, adding 5.5 million chatters to its rolls--a 36 percent increase. Interestingly, AOL saw a 13 percent decrease in the number of users of its ICQ instant messaging service, which dropped from about 9 million to 8 million between February and September.

Medium Is the Message

Besides the flash of the themes, the updated Yahoo Messenger adds a few unique functions. For example, it now launches a separate browser window when you log on to the instant messaging network. Yahoo calls this introduction screen Yahoo Insider, and its purpose appears to be to push you toward Yahoo services and to deliver ads.

Yahoo Messenger 5.0 also adds a graphical automated software robot called Magic Crystal Ball. To use this automated soothsayer to ponder your "yes" and "no" questions, you must add the bot to your Yahoo Messenger buddy list. Another unique function is typing notification, to alert your online buddies that you are typing a message to them even before it's sent.