MSN launches $50 m-campaign to woo AOL customers

By : |May 30, 2001 0

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.

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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