Microsoft Upgrades MSN Web Communities to Compete Against AOL
Redmond, Washington, Aug. 3 (Bloomberg) -- Microsoft Corp. unveiled a test version of its upgraded MSN Web Communities site designed to attract online gatherings of like-minded users and compete against No. 1 online service provider America Online Inc.
MSN Web Communities, part of the MSN network of sites, offers chat, message boards and mailing lists for interest groups ranging from business and politics to families and travel. The upgrade lets users create their own communities, such as fan clubs or family photo albums, said Microsoft, the world's biggest software maker.
Web communities are a rapidly growing battlefield for Microsoft and AOL because they can offer information and services specifically tailored to individual tastes. AOL's Digital City, which the company says is the biggest local content network in the U.S., today partnered with publisher Knight Ridder Inc. to provide local news and sports headlines to select Digital City sites. ''In just a few minutes, people can create a customized online club that reflects the personality and interests of their group,'' said Rob Bennett, Microsoft's group product manager in its consumer and commerce group.
Microsoft, which is based in Redmond, Washington, and AOL, based in Dulles, Virginia, also are locked in a battle over instant messaging, or real-time e-mail. Microsoft wants free access to AOL users of instant messaging; AOL wants payment for that access.
Microsoft shares today fell 1/16 to 84 3/4. AOL fell 3 15/16 to 88 15/16.
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