Message-ID: <14735490.1075845229729.JavaMail.evans@thyme> Date: Fri, 8 Jun 2001 08:39:56 -0700 (PDT) From: thestandard@boing.email-publisher.com To: mediagrok@thestandard.email-publisher.com Subject: MEDIA GROK: Juno and NetZero: A Skeptic's Field Day Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "TheStandard.com" @ENRON X-To: Media Grok X-cc: X-bcc: X-Folder: \Lewis, Andrew H.\Lewis, Andrew H.\Inbox X-Origin: LEWIS-A X-FileName: Lewis, Andrew H..pst ===================================================================== THE STANDARD'S M E D I A G R O K A Commentary on What the Press Is Reporting and Why ===================================================================== | http://www.thestandard.com | Friday, June 8, 2001 TOP GROKS: * Juno and NetZero: A Skeptic's Field Day * Microsoft Supplies the Missing Links * Everything's Coming Up Semiconductors MORE NEWS: * A Tale of 2 High-Tech Markets * AT&T Scales Back Plans for Interactive-TV Services * Time Has Come for Business 2.0 * NetZero and Juno Join Forces /=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-= **The Standard's new COMPANY INDEX** Find information about hundreds of companies in our new COMPANY INDEX. Browse through the alphabetical listings, industries and categories, or perform a search to find the company you're looking for. The Company Dossier hosts articles, a company profile, stock information and financial overviews, key players and contact information. http://click.email-publisher.com/oaaab7qaaP7YrbVAtCeaaaacSb/ =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/ CORRECTION: In the May 31 Media Grok, we reported that television ads for Outpost.com were aired during the Super Bowl. That was not the case. Also, we misattributed a quote by a PC Connection spokesman to that company's CEO. We regret the errors. TOP GROKS ~~~~~~~~~ Juno and NetZero: A Skeptic's Field Day Unfortunately for Juno and NetZero, the press seemed to use news of the free ISPs' planned merger as a refresher course in being skeptical, with virtually all outlets expressing doubt about the combined company's prospects for success. Witness TheStreet.com's George Mannes: "Divided they'd fall. Now the question is whether united they'll stand." And that's one of the nicer characterizations. Reporters had no trouble rounding up analysts and other observers to suggest that the deal, which would make United Online, as the new company will be called, second only to America Online in subscribers, won't ultimately have much effect on the companies' sagging fortunes. Heck, even NetZero CEO Mark Goldston, who will head the new company, said the free ISP idea isn't all it was once cracked up to be, telling the San Jose Mercury News, "The free model absolutely works when you put usage limits on it. Free doesn't work when you don't have the capital and you can't wait out the advertising downturn." The Wall Street Journal talked to Earthlink president Michael S. McQuary, who didn't miss a chance to get a jab in at the competition: "When you add more weight to a sinking ship, it just sinks faster." A few outlets mentioned that the merger will put an end to the quarreling that's been going on between Juno and NetZero for the last year or so; others focused on the companies' furious struggles to convert free users into paid. Under the new agreement, free service will be offered under the NetZero name, while those lucrative paid subscribers - currently only 1 million of the companies' 7 million customers, as outlets were happy to point out - will belong to the Juno brand name. (Griped one analyst to the L.A. Times, "They'll just lose money cooperatively.") Though the $70.7 million agreement between the companies was widely described as a merger, that term, as usual, has a very flexible definition. NetZero stockholders would own about 61.5 percent of the company, and Juno president Charles Ardai would slip off to sunnier climes while NetZero's Goldston takes over, once the deal is completed later this year. As for United Online's prospects, the folks at SatireWire weighed in, running a short piece with the headline "Juno, NetZero Merger to Create Largest ISP to Someday Declare Bankruptcy." How's that for skeptical? - Michaela Cavallaro NetZero and Juno join forces http://www.thestandard.com/article/0,1902,27017,00.html NetZero, Juno to unite in merger http://news.cnet.com/news/0-1004-200-6220173.html NetZero, Juno to Merge, Creating No. 2 Web-Access Provider in U.S. http://interactive.wsj.com/articles/SB991954943357558687.htm (Paid subscription required.) NetZero, Juno Online to merge http://www.siliconvalley.com/docs/news/svfront/juno060801.htm NetZero and Juno Online to 'Unite' http://www.thestreet.com/tech/internet/1455029.html Rivals Juno and NetZero Plan Merger http://www.latimes.com/business/cutting/todays.topstory.htm NetZero, Juno to Merge into 2nd Largest ISP http://www.atnewyork.com/news/article/0,1471,8471_780751,00.html Juno, NetZero Merger to Create Largest ISP To Someday Declare Bankruptcy http://www.satirewire.com/briefs/netzero.shtml ------------------------------- Microsoft Supplies the Missing Links Microsoft celebrated the one-year anniversary of a federal judge's order to break up the company by stirring a fresh firestorm of media criticism over a new feature that enables its browser to add links to other publishers' Web sites. The feature, Smart Tags, shows up on the browser and on some Office applications in test versions of Microsoft's Windows XP operating system, set to be released on Oct. 25. When a page loads into Microsoft's Internet Explorer, the browser can identify words in the text and attach links to Microsoft's own sites, or sites Redmond is friendly with. News.com's Joe Wilcox reported the feature on Wednesday, describing it primarily as a way to build links from applications such as Microsoft's Excel spreadsheets to Microsoft's Web services. Ticker symbols in a spreadsheet could link to company information on Microsoft's MSN MoneyCentral site. Wilcox quoted analysts who wrung their hands over the prospect of Microsoft hijacking visitors to its own sites. "Wouldn't that be something," Gartner analyst Michael Silver said. "You spend millions of dollars designing a Web site, and Microsoft has a Smart Tag that sends (users) to one of (Microsoft's) own sites." Grok wonders if Judge Jackson would find that to be something. On Thursday, Wall Street Journal columnist Walter Mossberg turned up the heat, calling Smart Tags "something new and dangerous." A Microsoft official had the gall to tell Mossberg the feature will spare users from "underlinked" sites. Supposedly, the feature will come turned off by default in new browsers, and Web site publishers will be able to add a tag to their pages to block the feature. "If the feature is so benign," Mossberg writes, "why is Microsoft hiding it and offering sites a way to block it?" By Thursday afternoon, the war drums were pounding. On Slashdot, notice of the tags drew, predictably, several hundred damning comments from Redmond-baiters, and hoots of chortling, cynical laughter at Michael Silver's comment on News.com that "I don't think there's any nefarious plot." Nick Wingfield's report in Friday's Wall Street Journal quoted UserLand Software chief executive (and sometimes Microsoft critic) Dave Winer saying, "It's creepy. It's bad. ... They don't have the right to modify my work." Microsoft appears to be already tugging nervously at its collar; a spokesman reminded us that "things sometimes change from the time they're in beta to the time they ship." Looks like there's plenty of time to change the code, or at least change the spin. - David Sims Windows XP may steer users' Web choices http://news.cnet.com/news/0-1003-200-6210768.html New Windows XP Feature Can Re-Edit Others' Sites http://interactive.wsj.com/articles/SB991862595554629527.htm (Paid registration required) Windows XP's Power to Add Links To Other Web Sites Stirs Dissent http://interactive.wsj.com/articles/SB991961636462948689.htm (Paid registration required) Microsoft Bets Windows XP Won't Be Banned by Court http://quote.bloomberg.com/fgcgi.cgi?ptitle=Technology%20News&s1=blk&tp=ad_t opright_tech&T=markets_bfgcgi_content99.ht&s2=ad_right1_technology&bt=ad_pos ition1_technology&middle=ad_frame2_technology&s=AOx.zzxSCTWljcm9z Where Does Microsoft Want You to Go Today? http://slashdot.org/articles/01/06/07/1252227.shtml ------------------------------- Everything's Coming Up Semiconductors Maybe it's the approach of the weekend or the nearness of summer, but all it takes are a few words from Intel, and the bulls are on the loose. In its first-ever mid-quarter conference call (thanks to those pesky SEC regulations that make companies share their secrets with all investors, not just selected analysts), Intel said things aren't really as bad as they seem. As Bloomberg put it, "the largest chipmaker said second-quarter sales will be at the lower end of its estimates, surprising investors who had expected less." In a conference call variously described as "positive," "upbeat" and "relatively good," Intel execs expounded on the wonders of what they said is a rebounding PC market. Analysts - and reporters, for that matter - would love for that to be true; one analyst told Bloomberg, "This is almost like a status quo announcement, and these days, that's mildly positive." TheStreet.com mentioned, however, that the company is "a bit of a lone voice in the personal computer sector right now," since other manufacturers are still saying the market is weak. Andy Bryant, Intel CFO, did acknowledge that the communications-chip part of Intel's business is still lousy and getting worse, though he added that the second half of the year should be better as regular seasonal ordering patterns pick up. Not so fast, cautioned the Financial Times: "Last year the traditionally strong second half for Intel did not materialize. Also, a large part of its revenues are usually booked in the final few weeks of its quarter, which makes it more difficult for the company to know at the mid-quarter if it will meet its prior expectations." Even National Semiconductor's news that it "expects a deep loss and a further decline in sales in the current quarter," according the Wall Street Journal, didn't dampen anyone's spirits. Nat Semi, as the Journal chummily called it, did manage to beat its own lowered earnings expectations, and the San Jose Mercury News reported that CEO Brian Halla "offered a slight glimmer of hope for the downtrodden communications sector." These days, it seems, that's enough to make a bull out of the gloomiest investor. - Michaela Cavallaro Bad is good http://www.thestandard.com/article/0,1902,27003,00.html Chip makers see light ahead http://www.siliconvalley.com/docs/news/svfront/intel060801.htm Intel Sticks to Guidance, Likes PC Prospects http://www.thestreet.com/tech/semis/1454534.html Intel Says Revenue and Margins Will Be Within Previous Guidance http://interactive.wsj.com/articles/SB991942592520355656.htm National Semiconductor Warns Of Weakness in Current Quarter http://interactive.wsj.com/articles/SB991930177872631609.htm Intel Shares Rise on Sales Forecast; Other Chipmakers Gain http://quote.bloomberg.com/fgcgi.cgi?ptitle=Technology%20News&s1=blk&tp=ad_topright_tech&T=markets_bfgcgi_content99.ht&s2=ad_right1_technology&bt=ad_position1_technology&middle=ad_frame2_technology&s=AOyCWVhTESW50ZWwg Intel mid-quarter news cheers up Wall Street http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT37WKL1PNC&live=true&useoverridetemplate=ZZZUGORQ00C --------------------------------------------------------------------- /=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-= **Standard U -- Executive Education for Today's Leaders** Lead by the faculty of Stanford Graduate School of Business and top industry leaders, Standard U is designed to equip Sr. managers with the skills they need to prosper. To get more information and apply: Call 800-945-0880 or visit http://click.email-publisher.com/oaaacjpaaP8GlbVAtCeaaaacTb/ Mention special tuition code, TISCCC and get 25% off tuition. =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/ /=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-= GET 4 FREE ISSUES OF THE INDUSTRY STANDARD The Industry Standard is the only weekly newsmagazine devoted to covering the New Economy--and you're invited to sample 4 issues--absolutely risk-free! Click on the url below to order today. http://click.email-publisher.com/oaaab7saaP7YtbVAtCeaaaacUb/ =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/ MORE NEWS AT THESTANDARD.COM ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ A Tale of 2 High-Tech Markets http://www.thestandard.com/article/0,1902,27016,00.html?nl=mg AT&T Scales Back Plans for Interactive-TV Services http://www.thestandard.com/article/0,1902,27018,00.html?nl=mg Time Has Come for Business 2.0 http://www.thestandard.com/article/0,1902,27014,00.html?nl=mg NetZero and Juno Join Forces http://www.thestandard.com/article/0,1902,27017,00.html?nl=mg --------------------------------------------------------------------- MORE LINKS ~~~~~~~~~~ Handspring halves quarterly outlook (Reuters) http://www.siliconvalley.com/docs/news/reuters_wire/1263493l.htm Have You Tried Advertising Online? http://ojr.usc.edu/content/story.cfm?request=591 For AOL and Microsoft, It's High-Tech Noon http://www.washingtonpost.com/wp-dyn/articles/A38665-2001Jun7.html Ellison reflects on great race in life, work, commitment http://www.siliconvalley.com/docs/news/svtop/ellisn060801.htm Ballmer: Would not launch MSNBC again http://news.cnet.com/news/0-1005-200-6220781.html South Dakota: Fire, Don't Filter http://www.wired.com/news/privacy/0,1848,44357,00.html STAFF ~~~~~ Written by Deborah Asbrand (dasbrand@world.std.com), Michaela Cavallaro (mcavalla@maine.rr.com),Keith Dawson (dawson@world.std.com), Jen Muehlbauer (jen@englishmajor.com) and David Sims (davesims@sonic.net). Edited by Jimmy Guterman (guterman@vineyard.com). Copyedited by Jim Duffy (jduffy@thestandard.com). GET THE MAGAZINE ~~~~~~~~~~~~~~~~ 4 RISK-FREE issues at this URL: http://click.email-publisher.com/maaacoMaaP80jbVAtCeb/ GET MORE NEWSLETTERS ~~~~~~~~~~~~~~~~~~~~ The Standard newsletters cover the media, stock market, e-commerce, music, law and more. To SUBSCRIBE to other newsletters, click here: http://click.email-publisher.com/maaacoMaaP80kbVAtCeb/ To unsubscribe, click here: http://thestandard.email-publisher.com/u/?bUrKAM.bVAtCe ADVERTISING INFORMATION ~~~~~~~~~~~~~~~~~~~~~~~ For more information on advertising in The Standard Newsletters, contact: Erik VanderKolk (evanderkolk@thestandard.com) FEEDBACK AND PROBLEMS ~~~~~~~~~~~~~~~~~~~~~ Send letters to the editor to letters@thestandard.com. 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