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America Online Growing Pains
03/07/95 VIENNA, VIRGINIA, U.S.A.,
1995 MAR 7 (NB) -- America Online has
been experiencing some growing pains
of late, as its membership passes the
two million mark. Problems have
included delayed electronic-mail,
network access problems, and delays
in the Internet interface upgrade.
In his March letter to AOL
members, Steve Case, AOL president,
said that the e-mail delays were a
result of a huge increase in usage,
"from 70,000 messages per day a year
ago, to more than 1.5 million e-mails
per day now." The delays were
particularly severe in the first two
weeks of February, Case said.
On February 14, AOL installed new
system software, which appears to
have solved the problem. "Mail sent
to AOL members is delivered
instantly, and mail sent to, or from,
the Internet is now usually delivered
in a minute or two," said Case.
In order to eliminate network
access, a problem in some parts of
the country, AOL is pushing to bring
higher speeds, and now offers access
at 14.4 kilobits-per-second (Kbps) in
nearly every city that offers 9.6
Kbps access. AOL is now testing 28.8
Kbps access through its own network,
AOLnet.
Case said development of a
browser for the World Wide Web has
been completed, and is now in
internal "alpha" testing, with
broader "beta" testing later this
month. He said Web access is likely
in May.
"A number of you might be
familiar with Web browsers that run
as applications separate from your
regular communications software or
online service," said Case. "We
thought a better approach would be to
fully integrate Web access into AOL,
so you can seamlessly access America
Online content and 'surf' the Web at
the same time."
He added: "We wanted to be able
to organize AOL based on topics of
interest (so, for example, all sports
content would be in one place,
irrespective of whether the data is
stored on AOL's computers or Web
servers), rather than organizing the
service based on the underlying
technology and thus fragmenting the
offering."
All that has taken more time than
AOL planned, said Case.
(Kennedy Maize/19950307/Press
Contact: Pam McGraw, AOL, 703-556-
3746)
How To Make Money Online - Report
03/07/95 WILTON, CONNECTICUT, U.S.A.,
1995 MAR 7 (NB) -- SIMBA Information
Inc. has announced the release of,
what it calls, the first report
written specifically for online
developers. Entitled "Economics Of
Online Publishing: Strategies For
Making Money Online," SIMBA claims
the report details how publishers and
marketers can take advantage of
online service growth by establishing
an electronic presence.
"We felt that there are still a
lot of content providers from all
forms of media, including television,
cable, retail, and cataloging, who
are not familiar with the online
environment," said Lorraine Sileo,
SIMBA editorial director and a major
contributor to the book.
In an interview with Newsbytes,
she said: "These providers are not
really familiar with the (electronic)
marketplace. This report fills that
need." The report was co-authored by
Peter Krasilovsky, a Washington-based
new media analyst, and editor of a
monthly primary research periodical
called "Interactive Consumers."
The report examines opportunities
for content providers in the online
environment. It examines the costs of
going online, including World Wide
Web development costs and outsourcing
versus in-house development. Sileo
also said the report contains several
models, both theoretical and real-
life, that providers can study and
follow to the online race. Some of
the real-life models of companies
that are now online include Time Inc.
Magazine Group, The Washington Post
Companies, and Capital Cities/ABC.
"It's basically a look at the
benefits and challenges of going
online. There's no one right way, but
it will tell you if you take a
certain route, this will happen,"
Sileo said.
Some observations from the report
include the opinion that magazine
publishers that leverage five key
assets when going online -- content,
readers, graphics, brand name, and
advertisers -- will be able to create
successful "communities of interest."
The study also says that commercial
online services penetrate only 4.2%
of US homes and 11.4% of homes with
personal computers, excluding the
Internet.
Sileo also said there are more
opportunities to sell to companies
and small businesses, because they
make up most of the online audience.
Economics of Online Publishing is
available now for $1,250 direct from
SIMBA.
(Bob Woods/19950307/Press
Contact: Lorraine Sileo, SIMBA
Information, 203-834-0033 ext 122;
Public Contact: SIMBA, tel 203-834-
0033 ext 178, fax 203-834-1771,
Internet e-mail SIMBA99@aol.com)