Would you pay for these things? I already spend enough money for the crap they show on TV. I dont have the url for this article because I downloaded the page to my computer. Sorry!
Products, services multiply online
By Shelly Emling, Palm Beach Post Staff Writer
Sunday, December 8, 2002
NEW YORK -- A year ago, Bob Pittman, the brash former chief operating officer of AOL Time Warner Inc., boldly pronounced that online enhancements would eventually drive members' monthly Internet service bills above $159.
Mercifully, that vision has yet to materialize.
But more and more Internet companies are testing the waters of premium services by charging for everything from multimedia clips to e-mail accounts loaded with bells and whistles.
Online consumers can now buy electronic greeting cards, Major League Baseball games, weather reports and instant messaging for lonely hearts.
Last week, America Online announced it would use news and entertainment from its sister divisions at AOL Time Warner to sell a $14.95 AOL service to customers already paying other companies up to $50 a month for high-speed Internet access.
Jonathan Miller, AOL's new chief executive, said premium services delivered via broadband are key to AOL's growth. By 2005, the company estimates that 20 percent of its subscribers will buy one or more of AOL's premium services, including voice mail, online educational courses and a music downloading service set to launch next month.
When the dot-com bubble burst, the advertising market suffered a major meltdown, spurring Web sites everywhere to sound a new rallying cry of "fee, not free."
"The best thing that happened to our business was the dot-com bomb, because it turned free into a four-letter word," said Garrett Bender, president and CEO of iBill, a Fort Lauderdale-based company that handles billing and credit transactions online. "Even if it's a dollar or two, everyone wants to charge because it really adds up."
Most studies have shown that the majority of Web users are reluctant to pay for content they now receive for free. According to a study released in spring by Jupiter Research, two-thirds of U.S. consumers say they wouldn't pay for any Internet content or service.
But online companies believe broadband, which allows users to more easily stream audio and video, will convert many free riders to fee-paying customers. Already, there are enough blips of premium activity on the country's digital radar to provide a definite uptick.
Studies report that U.S. Internet consumers spent $300 million on paid content in the first quarter of 2002, a 155 percent increase from the first quarter of 2001.
Several companies are betting heavily on premium services, including the popular portal Yahoo!, which has launched about two dozen new or add-on services. They include a personals service on which the love-hungry can post ads, receive e-mails from suitors and reach others via e-mail or instant messaging for $89.95 a year.
Last month Yahoo! rolled out Yahoo! Mail Plus, a new service that bundles existing premium services such as extra storage and tougher spam-fighting tools for $29.99 a year.
Also last month, the Atlanta-based Weather Channel debuted a premium weather service that delivers personalized alerts to subscribers via cellphone, pager or e-mail account.
"You're going to see more of these types of things as it gets easier and easier to do financial transactions on the Web," said Bender of iBill, which is handling transactions for The Weather Channel's
www.weather.com.Bender said he expects a boom in fee-based gaming sites.
Microsoft has launched a $19.95 service to download games from its MSN Zone.com gaming site, which attracts 7 million to 8 million visitors a month.
News and information also are sporting fresh price tags.
MSNBC.com recently said it would start charging for some of its multimedia clips next spring, though some audio and video will remain free.
Walt Disney Co.'s ABCNews.com and AOL Time Warner Inc.'s CNN.com already charge for video content.
"The product has been a very successful one," said CNN spokeswoman Edna Johnson, adding that the company doesn't release subscription numbers.
CNN video clips are available through CNN.com NewsPass service for $4.95 a month. They also are available through RealNetworks Inc.'s RealOne subscription service, whose 850,000 subscribers pay $9.95 a month for content from CNN, ABCNews.com, E! Networks, and Major League Baseball.
