Online Subscriptions Grow 5.3% to Reach 25.3M in 3Q
(Simba/Electronic Information Report) America Online's 9.3% jump in subscribers helped boost online subscriptions to 25.3 million for the third quarter
ended Sept. 30, a 5.6% increase over 23.9 million from second-quarter 1997 ended June 30, according to EIR's quarterly online subscriber survey. The 53
companies/providers surveyed represented more than 90 online services, and the group cumulatively reported an aggregate 1.3 million net new subscribers,
79% of which were in the consumer segment.
Among the five largest consumer Internet service providers, only three -- America Online, AT&T WorldNet and Prodigy -- gained subscribers. CompuServe
recorded a .6% decrease, to 5.34 million subscribers, down from 5.37 million subscribers. EIR estimates the Microsoft Network remained flat at 2.3 million
subscribers, while America Online increased subscribers 9.3% to 9.4 million from 8.6 million at second-quarter 1997. AT&T WorldNet increased subscribers
7.8% to 970,000 from 900,000 in second quarter 1997.
Prodigy subscriptions jumped 6.5%, to 1.1 million subscribers from 1 million, a net gain of 65,000 subscribers. The gain came as a result of Prodigy doubling
its advertising, marketing and promotion budget to $100 million, according to Barry Kluger, senior VP of communications. In early October, Prodigy launched
a national television campaign that will run through December 1998.
Consumer services that lost subscribers include Delphi and the Fort Worth Star-Telegram. Delphi president Dan Bruns noted that the company's base of
paying subscribers to its text-based proprietary online service has steadily declined as the company has moved to an ad-supported model. During the third
quarter, the Fort Worth Star-Telegram changed its online service from a service provided free to its newspaper subscribers to a subscription-based service.
WavePhore's Newscast Today service had the second largest growth rate, achieving a 52.9% increase to 158,000 subscribers from 103,332 at the end of
second-quarter 1997. WavePhore added a net 55,000 users from 14 corporations. Southam Electronic Publishing increased InfoMart subscriptions 24.5%,
to 4,980 from 4,000 in second-quarter 1997 due to an aggressive advertising campaign.
Of the 13 consumer companies/providers surveyed, eight gained subscribers, three lost subscribers and two experienced flat growth. Reality Online, which
operates Reuters Money Network and Moneynet.com services, had the largest percentage gain, reaching 201,100 subscribers during the third quarter, a
54.5% increase over 130,200 subscribers in the second quarter. During the third quarter, the company grew its Web site licensing contracts to 45 from 20,
according to Carol Mackin, Reality Online director of marketing.
Telescan Inc. and Dow Jones Interactive Publishing's Wall Street Journal Interactive also reported double-digit gains. Telescan increased its subscribership
25.5% to 345,000 from 275,000 in second-quarter 1997. Telescan attributed the gain to growth in its Wall Street City online service and increased exposure
of its services through its partners Netcom and American Express. The Wall Street Journal Interactive increased its subscribers 23%, to 150,000 from
122,000 in second-quarter 1997.
Aggressive sales and marketing efforts started in the third quarter helped boost PC Quote subscriptions 27.2% to 10,300 from 8,100 in the second quarter.
Bloomberg subscriptions increased 5.5% to 84,390. |
