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Microsoft challenges AOL

OUT-LAW News, 26/10/2000

Microsoft yesterday launched a $1 billion marketing campaign to promote its refurbished MSN Web in a direct challenge to AOL’s 40% share of the ISP market in the US.

The new MSN service includes a new browser and content updates, but also represents Microsoft’s first step in its .NET strategy of a web-based software environment.

Over 210 million unique users visited MSN in September, more than visited either AOL or Yahoo!, which Microsoft says makes it the world’s most popular consumer network on the internet. MSN also claims to be the largest global network, with service in 33 countries and 17 languages.

Rick Belluzzo, group vice president of Microsoft’s Personal Services and Devices Group, said:

“We know that there are a lot of dissatisfied AOL users who are vulnerable to a switching message. Based on our research, as many as 50% of AOL’s users said that they would quit within six months if they had a better alternative… we’re trying to make it easy for people to switch to MSN.”

Presently, MSN has 3.5 million customers for its ISP services; this compares with AOL’s 25 million customers.

 

 

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