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PRODIGY MODEL STILL DOES NOT WORK, ACCORDING TO JUPITER STUDY

 PRODIGY MODEL STILL DOES NOT WORK, ACCORDING TO JUPITER STUDY
 NEW YORK, Sept. 10 /PRNewswire/ -- Based on findings from "The Prodigy Report II," a just-released market research study from the New York City-based Jupiter Communications, the Prodigy business model still does not work. Jupiter does not expect that Prodigy's existing model will recover return on investment -- estimated at over $800 million -- before the year 2000, or that the personal computer-with-modem market is large enough to sustain the business over the long-haul.
 Prodigy is, however, well-positioned to make the necessary changes that will evolve its service to meet the challenges of emerging consumer technologies -- one that will reach the mass market. Prodigy is likely to develop into a significant consumer information appliance player, a twist on its existing approach which will pay huge dividends. Using its nationwide platform, extensive array of services, marketing muscle, and especially its quality technical capabilities, the IBM/Sears joint venture is expected to develop variations of Prodigy for personal digital assistants, screen-based telephones, remote wireless devices, and even interactive television.
 According to the Jupiter study, 3.1 percent of U.S. households now subscribe to at least one consumer information service, and over one- third of those -- about 1.2 million -- subscribe to Prodigy. While current patterns suggest flattening growth, Jupiter believes that the emergence of new interactive communication devices will result in 16 percent of households being "plugged in" to information services by 1997. System operators with the foresight to diversify the interactive distribution of their commodity -- information -- will be the big winners, as consumers begin adopting the "information appliances" that will sit in the entertainment and communication centers of the home, on the desktop, and in briefcases.
 "The Prodigy Report II: Does the Model Work?" is Jupiter's second annual research study on the IBM/Sears joint venture. Jupiter Communications is a research and consulting firm specializing in mass market information services. Jupiter publishes "Consumer Information Appliance," a monthly newsletter that tracks emerging communications technologies for homes and small businesses. "The Prodigy Report II" sells for $695 and is available immediately.
 -0- 9/10/92
 /CONTACT: Joshua M. Harris of Jupiter Communications, 212-941-9252, or 212-941-7376, fax/ CO: Jupiter Communications ST: New York IN: CPR SU:


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Date:Sep 10, 1992
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