 | It also helps that AT&T now has a full portal solution developed 100% in house )which includes a photo album solution with, as far as I can tell, unlimited storage). Granted, you have to be an account that isn't on AT&T Yahoo! to use it...
Benefits to AT&T: they get 100% of the advertising revenue, the product is developed 100% in house to keep costs down, and people are already using it.
When did AT&T come up with this solution? They didn't. They acquired it in the merger with BellSouth. The replaced the former AT&T WorldNet portal with it earlier this year, and eventually migrated legacy AT&T customers (that didn't migrate to AT&T Yahoo!) to it.
In fact, the new "AT&T Yahoo!" page actually has alot of services provided 100% by AT&T (take Travel for instance). |
 | The big draw to Flickr is the social sharing aspect of the site. There are a million photo sharing sites out there, but Flickr is the most popular one for sharing photos publicly with friends and groups. That's a value-add that AT&T is unlikely (and shouldn't be) developing in-house. |