Facing early losses, some Web publishers begin to pull the plug; too many companies vie for too few customers and advertising dollars; 'reality hits the Internet'

Article Abstract:

While hundreds of companies have invested heavily in Web newspapers and magazines, along with various innovative types of online content such as soap operas, chat rooms and talk shows, most of them are modifying their ventures due to mounting losses. The pioneers of Web publishing have relied on the rapid increase of Web users to justify investments, rationalizing that the number of users alone would generate enough viewers to attract advertisers. Reports show, however, that despite the growing number of Web users, only 10% to 15% of total users are daily users. Surveys also prove that the number of users and advertisers is far outweighed by the vast number of competing publishers. Jupiter Research LLC reports that $300 million worth of Web advertisements in 1996 are being sought by more than 900 competing companies. Another concern that all publishers must address is the fact that consumers prefer the passivity of television to the searching and reading inherent in the Internet.

Publishing industry, Internet/Web overview, World Wide Web

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Microsoft's on-line service goes to a TV format

Article Abstract:

Microsoft is changing the format for its Microsoft Network (MSN) online service to one that resembles TV channels. The new MSN, which will begin on Dec 10, 1996, will employ new software and offer new services. The company will employ its ActiveX software to develop scrolling banners and moving images. Microsoft is changing the format because most of its customers are accustomed to passive TV viewing. The new-style Web entertainment requires less reading and user activity. Microsoft is hoping to attract new customers and double MSN membership to 3.2 subscribers by Jun 1997. This would put MSN in second place among the online services, behind America Online. The media changes are costing Microsoft $400 million annually and the company does not expect a return on its investment for at least two years. Web-content businesses could prove highly profitable in the long term.

Online services, Design and construction, Online Service Introduction

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Microsoft's on-line service to withhold subscriber names from its own vendors

Article Abstract:

Microsoft is planning to withhold the names of subscribers to its Microsoft Network online information service from its partners and other information companies. Instead, the software company will collect the user information in order to target the users for promotional information about its own products. Microsoft officials say that the decision is needed to protect the privacy of its users and is consistent with Microsoft's policy of not sharing proprietary information with other companies. The decision has some companies concerned about the control Microsoft will have over its subscriber base. The US Department of Justice is already investigating possible antitrust violations in relation to the Microsoft Network to determine if the company will have unfair advantages with its online network.

Marketing, Information services, Company marketing practices, Company services

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