Microsoft bleeding red ink on Net services. (fwd from Educom)
I Find Karma (adam@cs.caltech.edu)
Mon, 18 Nov 96 15:55:56 PST
Microsoft Executive VP Steve Ballmer says his company will spend about $400
million this year on content development for its Internet services, and
plans to continue investment at approximately that level over the next few
years. "We're going to lose a lot of money before we break even," says
Ballmer. In addition to content for Microsoft Network, the company is also
investing in MSNBC and its Expedia travel service. None of the services is
expected to be profitable for several years. "If only companies with the
financial power of Microsoft can make it in the content business, then we're
years away from a viable Internet economy," says the president of Forrester
Research. A group director at Forrester estimates that revenues generated
from companies' Web activities are covering only about 20% to 30% of their
costs. (Wall Street Journal 15 Nov 96 B9)
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adam@cs.caltech.edu
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