Today: 487.6.96 1-25-96 Reminders: ¥ Need your strat plan choices today ¥ We'll select the order of presentations today ¥ Your written reports will be due by 5 pm the day after your presentations. Steve Case: AOL n On-line services began by re-purposing print content n Then focusing on television content (deals with ABC, NBC and MTV.) n Now focusing on proprietary content (Ellerbee on Encarta, etc.), Internet access Case's goal: n "To provide for our customers a broad reach across many services, across many access devices, across many communication conduits--and integrate it all in a simple, affordable, useful, fun way." Case's other points: n New media will not kill other media o No interactive "D-Day" n Most interesting franchises: hybrid products o linking print with cable o linking online with CDs, Internet CaseÕs other points: n Online services may not be mass media o 5-15% penetration, not 50% n Simplicity lacking o Compare cars in Ô76 and Ô96 o Compare computers in Ô76 and Ô96 n Nets succeed by linkages, not single programs More from Case: n Media companies should move NOW o MTV should be Rolling Stone Channel o CNN should be Newsweek Channel o ESPN be Sports Illustrated Channel n Q: What are broadcasters doing to enter the online world? Case's other points: n Aggregators will rule: online equivalents of o networks o department stores/malls o integrated software "suites" n If aggregators don't rule: o AOL continues as "friend of content" 18 months later.... n AOL 4.5 million subs n Compuserve 3.9 million subs n Prodigy 1.6 million subs o at risk (IBM vs Sears) n MSN 600,000 subs o coming up fast! n e-world 126,000 subs Our Advice to Steve Case: n Strategies o defensive moves, pre-emptive strikes n Content o what would you want? n Marketing o how to increase mkt share, kill off Prodigy, reach non- users? Words for the Day Pretty soon we won't call using on-line reference works Õreading.Õ We'll just call it ÔreferencingÕ. This will leave the term ÔreadingÕ to describe printed matter where sequence does count, as in novels, essays and poems. Reading will be our continuity in a fragmented world. David Weinberger, pres., Evident Marketing, Brookline, Mass.