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AOL, COMPUSERVE PLANNING FALL BATTLE FOR ON-LINE USERS.


Byline: Hiawatha Bray ‘’‘Hiawatha Bray’’’ is a technology columnist for the ’’Boston Globe’’. Born in Chicago, he started as a reporter and managing editor for ’‘Computerpeople Weekly’’.  The Boston Globe

It's autumn, and along with millions of falling leaves, Americans can expect a steady downpour of computer disks. America Online See AOL.  and CompuServe, the nation's two biggest commercial computer networks, have launched new efforts to reinvigorate themselves, after a summer of stagnant growth.

AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services.  will make the biggest splash. During last week's Monday Night Football “MNF” redirects here. For other uses, see MNF (disambiguation).

Monday Night Football (MNF) is a live television broadcast of the National Football League.
 game, the company kicked off an advertising blitz budgeted at $100 million over the next three months alone. AOL Chairman Steve Case Steve Case (born August 21, 1958) is a businessman best known as the co-founder and former chief executive officer and chairman of America Online (AOL). He reached his highest profile when he played an instrumental role in AOL's merger with Time Warner in 2000.  vowed that his company would spend at least as much next year. Along with traditional TV ads, AOL will run 30-minute infomercials, and also send a videotape to each of its 6 million members. And AOL will continue its practice of distributing its software on millions of computer disks stuffed into magazines or inserted into mailboxes.

``We're really taking AOL to the next step - reaching out to a mainstream audience,'' said Case. ``In order to do that, we decided to rethink every aspect of our business.''

In an enhancement of its service, AOL continues to expand its Digital Cities project, bringing community-oriented news and forums to major U.S. cities.

In Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , the Daily News' on-line service is accessed through AOL (keyword Daily News).

Case also said that AOL will work harder to retain current customers. For instance, AOL now interviews customers who want to cancel their membership, in an effort to change their minds. Case said that 20 percent of those who are interviewed decide to continue as AOL members. ``We often find they were trying to cancel because they couldn't find their way around the service,'' Case said.

Ironically, the first wave of new AOL disks won't feature the company's latest software. Earlier this year, AOL announced that it would incorporate the Microsoft Internet Explorer See Internet Explorer.  browser into its software. But Case said Sept. 30 that this version is still being tested and will become available in two weeks.

Meanwhile, AOL's rival CompuServe began distributing its new software Sept. 30, with the Microsoft browser built in. The new CompuServe software is available for Windows 95 and Windows 3.1 computers, but not yet for Macintosh machines.

CompuServe hopes that the new software, and a relatively modest print advertising campaign, will enable the company to remain competitive in the on-line services market. CompuServe claims 2.5 million customers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  and 5.2 million worldwide. CompuServe spokesman Jeff Shafer admitted that his company doesn't have the money to match the AOL blitz. ``We can't go toe-to-toe with AOL, so we're going to have to do our marketing better,'' Shafer said.

Sniping at AOL's mass mailings of software, Shafer said that CompuServe would not ``carpet bomb Verb 1. carpet bomb - bomb a large area systematically and extensively; "The U.S. decided to carpet bomb Vietnam"
bomb, bombard - throw bombs at or attack with bombs; "The Americans bombed Dresden"
 the country with coasters, or with disks that are going to become coasters.'' And the company's TV ads will focus on its family-oriented WOW! on-line service. As for CompuServe, Shafer said the company would focus on its traditional strength - its popularity with business people and experienced computer users. ``Those people do not tend to be the same audience that watches eight hours of TV a day,'' he said.

The new offerings from CompuServe and AOL come at a time of increased skepticism about the future of traditional on-line services. This summer, AOL reported a dramatic slowdown in the rate of new customer sign-ups, while CompuServe actually reported a membership decline.

A new survey released two weeks ago added fuel to the fire.

The on-line research firm Odyssey reported that more households now get Internet access See how to access the Internet.  through direct Internet access providers than through on-line services like AOL and CompuServe. The report has caused consternation among on-line companies, especially since other recent surveys have found the opposite result.

Emily Green, an analyst for Forrester Research Forrester Research is an independent technology and market research company that provides its clients with advice about technology's impact on business and consumers. Corporate facts
  • Founded: 1983 by George F.
 in Cambridge, rejects the idea that the on-line services are being defeated by the direct Internet access providers.

But Green believes that the access providers are forcing on-line services to rethink their business strategies.
COPYRIGHT 1996 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:BUSINESS
Publication:Daily News (Los Angeles, CA)
Geographic Code:1USA
Date:Oct 7, 1996
Words:657
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