CompuServe's critics see hypocrisy in its efforts to restrict adult content

Article Abstract:

CompuServe has posted conspicuous messages in its online service ostensibly to warn users about 10 'areas' that contain adult material, but some say the messages are really intended only to limit CompuServe's liability or even to promote areas that CompuServe profits from directly. Shortly prior to the appearance of the messages, CompuServe acquired a 40% interest in Entertainment Drive, a company that provides content, some of which is sexually explicit, for a popular area of the same name. CompuServe's detractors point out that far from deterring impressionable teenagers, the warning messages are likely to incite their curiosity. The messages proclaim that the content is for adults and that users who continue 'acknowledge' that they are over 18. Just prior to the message posting, Congress debated laws that would strictly prohibit availing minors of online pornography.

Specialized Telecom Services, Wired Telecommunications Carriers, Laws, regulations and rules, Services, Information services, Public opinion, Information services industry, Censorship, Censorship issue

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CompuServe posts $4.1 million loss; sets flat-rate fee above those of rivals

Article Abstract:

CompuServe Corp. announced a monthly flat-rate plan of $24.95, in an attempt to reverse subscriber losses. The oldest US on-line service also reported a $4.1 million loss for the 1997 first quarter ended July 31. CompuServe during the same span lost 94,000 customers and now reports 1.4 million customers. This represents a loss compared to CompuServe's 1.5 million customers in the prior quarter. CompuServe has joined the market in offering a full-service option, but analysts say America Online (AOL) and other rivals offer similar services for $19.95. Frank Salizzoni, H&R Block chmn and CEO, and CompuServe acting CEO, said the move marks a step in the right direction. H&R Block continues to discuss selling its 80% share in CompuServe to AOL and also is meeting with financial-services company Welsh, Carson, Anderson & Stowe, according to industry officials.

On-Line Information Services, Videotex & Teletext, Finance, Prices and rates, Company pricing policy, CSRV

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