Online Subscriptions Grow 12.9% in 2Q
(Simba/Electronic Information Report) America Online's 1.1 million net new subscribers helped boost online subscriptions to 24.7 million
for the second quarter ended June 30, a 12.9% increase over 21.9 million at the end of 1996, according to EIR's quarterly online
subscriber survey (OSS). The 53 online companies surveyed reported an aggregate 2.8 million net new subscribers.
These second-quarter results represents a solid increase over the disappointing 6.6% subscription growth in first quarter 1997, but are less
than the 22.9% increase reported in second quarter 1996.
Led by AOL again, the consumer online services segment increased 11.9% to 20 million subscribers, from 17.9 million at the end of 1996.
Of the 15 companies surveyed, three reported flat growth, including CompuServe with a 1.6% change. The Fort Worth Star-Telegram
reported a .1% subscriber loss to 8,000 subscribers from 8,011 at the end of 1996.
Following months of rebuilding its flagging infrastructure, AOL revitalized its customer-acquisition marketing efforts, which resulted in
immediate gains. AOL's subscriber base grew to 8.6 million from 7.5 million, a 14.7% increase. Chief rival CompuServe's subscriber base
increased a paltry 1.6%, to 5.4 million (worldwide) from 5.3 million at the end of 1996. Fighting a high churn rate in the U.S., company
officials attributed the near break-even to an increase in SPRYNET subscribers and to consistent growth in Europe. Of the three largest
online services in the survey, Microsoft Network reported the largest percentage jump in subscribers, to 2.3 million from 1.7 million at the
end of 1996, a 35.3% increase.
The 27 services in the business/professional segment experienced the largest percentage growth among the three segments. Subscribers
grew to 3.6 million from 2.9 million at the end of 1996, a 21.8% increase. Services that reported double-digit growth included Desktop
Data, Dow Jones Interactive Publishing's DowVision, Questel Orbit, Online Computer Library Center's two services, M.A.I.D and
Reuters.
After launching three new services during the first half of the year -- Multex Publisher, MultexEXPRESS and Multex
Research-on-Demand -- Multex Systems Inc. experienced a 2,557.3% increase in subscribers to 292,300 from 11,000 at the end of
1996. Individual's business/professional services grew 37% to 633,000 subscribers. Company officials attributed the increase to growth in
the company's flagship NewsPage product, which recently added several new features, including ClariNet's ClariNews.
WavePhore, which acquired Paracel Online Systems and its estimated 30,000 subscribers during the second quarter, increased to
103,332 subscribers from 45,000, a 129.6% jump.
Due to subscriber losses at Dow Jones Markets (-3.7%), PC Quote (-35%) and Data Broadcasting Corp. (-6.9%), financial services
grew only 5.3%, to 1.13 million subscribers from 1.08 million subscribers at the end of 1996. In April, PC Quote changed MarketSmart
to an ad-based model so its drop in subscribers reflects that change. Only three of the 11 companies in the financial segment, Bloomberg
Financial Markets (13.4%), Bridge Information Systems (13.9%) and Track Data (22%), experienced double-digit growth.
Cowles/Simba Media Daily 8/22/97
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