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MSN launches $50 m-campaign to woo AOL customers

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CIOL Bureau
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NEW YORK: Software giant Microsoft Corp. said on Tuesday that its MSN

Internet unit launched a $50 million advertising campaign designed to woo

customers from rival AOL, a unit of the world's largest Internet and media

company, AOL Time Warner Inc.

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Following a price hike by AOL last week, the campaign is aiming to persuade

consumers to drop that service and sign up for MSN Internet Access, the company

said. The campaign will include nationwide advertisements and a limited-time

promotional offer.

Microsoft said consumers who switch to MSN by June 30 would receive three

months of free Internet access as well as a guaranteed rate of $21.95 a month

until Jan. 1, 2003.

A week ago AOL Time Warner said it will raise the monthly price of its

flagship service's unlimited use plan to $23.90 from $21.95 with the July

billing cycle. It was the first price increase in three years for the plan,

which gives subscribers unlimited access to AOL's services.

AOL had been hinting at a price increase for some time, and some analysts had

said the move might be necessary for AOL Time Warner to meet its aggressive

year-end growth targets in the wake of a slowdown in the overall advertising

climate and growing economic uncertainty.

(C) Reuters Limited 2001.

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