MSN Refocuses on Client Software

MSN is updating the client software for MSN Internet Access, hoping to draw new users to the service and reduce churn rates. The new client, which adds features such as parental controls, spam filtering, and a new e-mail interface, will also be sold to users of other ISPs for a monthly fee. MSN will also cut costs, particularly by reducing expenditures on promotions. By increasing the number of paying MSN Internet Access subscribers, selling the MSN client software separately, reducing operational costs, and possibly increasing prices, Microsoft hopes to bring MSN into the black. This is particularly important as Microsoft subjects the unit to greater financial scrutiny by investors.

MSN 8: Updated Client, Business Strategy

As it traditionally does every fall, Microsoft will update MSN in fall 2002. However, while past updates focused on the MSN Web portal, this year’s new features will be delivered exclusively in new client software called MSN 8 (which is essentially an updated version of the MSN Explorer client software introduced in fall 2000). The MSN 8 client will include a subset of features from existing Microsoft products, such as Outlook Express, Encarta, and Money, along with other features such as parental controls and better spam filtering. (For a detailed rundown of the new client, see the sidebar “What’s New in MSN 8“.)