To: ChinuSFO who wrote (35426 ) 12/16/1999 7:51:00 PM From: Sonki Read Replies (1) | Respond to of 41369
Meeker & comp. mostly : b2b. ** AOL, Microsoft hunt newbies in aisle 3 chk my priv. post on meeker.. on intel 4 wealth. ======================================== America Online (AOL) and Microsoft (MSFT) went shopping for new customers Thursday at Wal-Mart (WMT) and Best Buy (BBY), respectively. They announced "strategic marketing" arrangements with the major retailers. In its deal, Microsoft said it would buy $200 million worth of Best Buy stock to reward the retailer for demonstrating and selling Microsoft's MSN Internet access and other Web products in 350 stores. "These retailers have been a bit behind the curve in moving onto the Internet, and they see it's been a good holiday selling season," commented Forrester Research (FORR) analyst Seema Williams. "They are good sources of new customers for the onliners." AOL pointed out what it sees as its market-expansion opportunity: In 60 percent of the towns where Wal-Mart operates, AOL said, there is no local Internet service provider. The America Online arrangement with Wal-Mart calls for creation of a customized version of the CompuServe service, "priced for value-conscious consumers," according to a company news release. Analyst Williams applauded AOL's decision not to make Internet access free for the new customers, as Yahoo (YHOO) did in its deal with Kmart (KM). "You have to pay the costs somehow," she said. Williams also indicated that AOL is looking beyond the partnership arrangements that have generated big money in payment for AOL's ability to drive traffic. "Eventually, some of those people will be able to draw Web visitors on their own and won't need AOL. It's smart to keep focusing on generating revenues from subscribers," she told CBS.MarketWatch.com.