Yahoo decreases its free email storage limit from 1 terabyte to 20 gigabytes.
Yahoo Mail, once a pioneer in offering generous email storage, is making a significant shift towards a subscription-based model. The change comes as the platform, now under new ownership by Apollo Global Management, aims to sustain its service and improve long-term user experience.
The future of Yahoo Mail will likely depend on how it balances free and paid services, and user tolerance for ads. Currently, users can have an ad-free experience by subscribing to Yahoo Mail Plus for more than $5/month, which offers 200GB of storage and a few extra features.
Yahoo Mail Plus is not the only paid option available. Users can also opt for 100GB of storage for $1.99/month (still with ads) or 1TB for $9.99/month (also with ads). It's worth noting that Yahoo Mail Plus, despite being a paid subscription, still includes ads for its users.
The reduction in free storage capacity from 1TB to 20GB will impact long-time users with decade-old email histories the most. Users who exceed the 20GB limit will lose the ability to send or receive new emails until they delete old messages or upgrade to a paid plan. However, mailbox access for management remains available.
To facilitate the transition, Yahoo is rolling out real-time storage tracking, sorting filters for large emails, and an attachment manager to help users clear up space. This move brings Yahoo Mail's storage offering more in line with competitors like Gmail, which offers less free storage but arguably more value through integration with Drive and Photos.
Yahoo was popular before the advent of Gmail due to its generous email storage. At one point, Yahoo offered a whole terabyte of free space. Users born in the '90s or older may have a Yahoo email account.
Despite the changes, the ad experience on Yahoo Mail remains less cluttered compared to Gmail. Users who are willing to pay and have a tolerance for ads may find the new paid plans attractive, while others may choose to switch to alternatives.
The move by Yahoo to reduce free storage and offer paid plans is a response to industry trends towards monetization and subscription-based models. It's a strategic move aimed at ensuring the platform's sustainability and providing a better user experience in the long run.
The strategic shift of Yahoo Mail towards a subscription-based model puts an emphasis on the integration of paid services, including Yahoo Mail Plus, which offers technology features like real-time storage tracking and an attachment manager, alongside financial benefits such as increased storage capacity. Although Yahoo Mail Plus still includes ads, it positions itself as a budget-friendly technology solution, positioned against competitors like Gmail that leverage their integration with Drive and Photos for added value.