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Microsoft Aims to Challenge AOL's Dominance in Internet Access

Strategic Insights

— 1 min read

Microsoft's MSN Internet access business is working to attract more customers than AOL, with a goal of increasing its subscriber base by threefold. Despite AOL's dominant position, Microsoft has made significant strides in its Internet business, expanding its Hotmail e-mail service to 52 million subscribers and launching the MSN Messenger Service with 5 million users. Microsoft has also partnered with major retail chains, including Best Buy and Radio Shack, to market its Internet access service. The company is betting that its retail strategy will help it take on AOL's strong customer base and become a major player in the Internet access market.

Key Takeaways:

  • Microsoft's MSN Internet access business aims to attract more customers than AOL, with a goal of tripling its current subscriber base of 2.5 million.
  • AOL has added 5 million subscribers in 1999, and if it continues at this pace, Microsoft will need to significantly increase its subscriber base to meet its goal.
  • Microsoft's Hotmail e-mail service has 52 million subscribers and its MSN Messenger Service has 5 million users.
  • Microsoft has partnered with major retail chains, including Best Buy and Radio Shack, to market its Internet access service.
  • Despite Microsoft's efforts, AOL remains the dominant Internet access provider, with 20 million subscribers.
  • Microsoft's Internet access business has undergone a revitalization in recent months, with significant marketing and development resources being thrown behind it.
  • The company believes that its retail strategy will help it take on AOL's strong customer base and become a major player in the Internet access market.

Statistics:

  • AOL has 20 million subscribers.
  • Microsoft's MSN Internet access business has 2.5 million subscribers.
  • AOL added 5 million subscribers in 1999.
  • Microsoft's Hotmail e-mail service has 52 million subscribers.
  • Microsoft's MSN Messenger Service has 5 million users.
  • The use of MSN's new search engine has jumped 75 percent since its launch in September.
  • Traffic on Microsoft's shopping site is up more than 600 percent compared with last year.

Sources:

  • "The Seattle Times"
  • "Microsoft Corp.'"

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