Excite CEO Bell Says Internet Content, Not Distribution, Matter
By Jonathan Make
New Orleans, May 10 (Bloomberg) -- George Bell, promoted to
chairman of Excite At Home Corp. this week, said customers care
more about content such as video on demand, news and music, not
the technology used to reach the Internet.
Internet providers can develop more content to retain
customers and attract new subscribers, said Bell, who on Monday
replaced Thomas Jermoluk as chairman of the No. 1 U.S. provider
of fast Internet connections over cable. Other speakers echoed
his remarks at the final presentation of the National Cable
Television Association's annual meeting in New Orleans.
Excite and America Online Inc., whose president also spoke,
are among the few large companies that run popular Web sites and
provide Internet connections. As more people demand high-speed,
always-on Web connections from home, customers will be attracted
to companies that offer the best content, the executives said.
``People at the end of the day obviously get more out of
content, not to the form of distribution,'' said Bell, who is
also chief executive of Excite. ``We want to make as much as
possible in terms of our investment strategies there.''
In addition to Bell, Microsoft Corp. Chief Executive Steven
Ballmer and Robert Pittman, president of America Online, also
spoke on the cable convention panel. All the executives stressed
that phone, cable and Internet companies must focus on customer
service, in addition to technical issues.
``The laws of consumer behavior apply to the Internet:
brands win, and convenience is king,'' said Pittman, who will be
co-chief operating officer after America Online completes the
planned acquisition of Time Warner Inc. for $139 billion. ``E-
mail is a whole lot better than licking stamps and sealing
envelopes.''
Shares of Dulles, Virginia-based AOL fell 2 1/4 to 54 on the
New York Stock Exchange. Microsoft, the No. 1 software maker
that's based in Redmond, Washington, fell 1 5/8 to 66 3/16 on the
Nasdaq Stock Market.
Excite's Executives
Bell said that Jermoluk's departure doesn't mean that
Excite's business plans will change, as Jermoluk will remain on
the board. Both men are 43.
``It really doesn't spell much change in terms of the
company's strategy,'' Bell said. ``It is a commitment on our part
to try to consolidate management to see if we can just go
faster.''
Bell also reiterated forecasts that the number of Excite's
customers will double this year as the service is available in
more areas and installing cable modems becomes easier.
The company expects to have 6 million customers by the end
of 2001 and 10 million in 2002, from the 3 million it expects at
the end of this year, he said. Excite At Home had 1.5 million
subscribers as of March 31.
Shares of Redwood City, California-based Excite At Home fell
1 1/16 to 18 7/8 on the Nasdaq Stock Market. They've declined 76
percent over the past year on concern subscriber growth could
slow and that New York-based AT&T Corp., which controls Excite,
might use other companies for Internet service. |
