MSN Launches Range of Services

In an effort to increase subscription revenue, MSN has expanded its range of fee-based services. In addition to launching the previously announced MSN Premium and MSN Plus services, the division has rolled out several new subscription services based on e-mail, including new extra storage options and personal e-mail domains. MSN also launched a subscription-based online version of the Encarta encyclopedia, a free MSN Video service, and new programs for advertisers.

Focus on E-Mail

The new e-mail offerings continue the division’s longstanding attempt to find services-apart from Internet access-for which customers are willing to pay a monthly fee.

Between the fall 2002 quarter and fall 2003 quarter, MSN’s subscription revenue dropped 6%. The main reason for this drop is that customers are leaving MSN’s dial-up Internet Access as the deeply discounted promotions that originally drew them to the service come to an end. Meanwhile, MSN 8, which launched in fall 2002 and combined proprietary client software for Web browsing and e-mail with various online services, has not drawn enough new customers to make up for the declining dial-up business.