MSN 8 Launch, Alliances

MSN 8, the latest update to Microsoft’s client software for MSN Internet Access and some accompanying online services, became available in North America on Oct. 24. MSN 8 features a new interface for e-mail and Web surfing, new content (both in the client itself and online), and new features, such as parental controls and better spam protection. (For more details on strategy and feature set, see “MSN Refocuses on Client Software” on page 24 of the Sept. 2002 Update.)

The client will be distributed free via mail to current customers of MSN Internet Access and partner ISPs Qwest and Verizon; customers of other ISPs will have to pay Microsoft US$9.95 a month to use it. The company will try to reach new customers via direct mail (a channel heavily used by AOL), retail outlets, and OEM channels. The company will also be encouraging visitors to MSN Web sites to download a limited version of the client; they can then obtain the full MSN 8 package by mail.

Although MSN Vice President Yusuf Mehdi told financial analysts in July 2002 that the days of expensive promotions are over, Microsoft will spend US$300 million marketing MSN 8-twice as much as it spent to market the last major MSN update in 2000.