Manu
07-26-2001, 02:44 PM
AOL to Push for Presence on New PCs-Paper
WASHINGTON (Reuters) - AOL Time Warner Inc. is going after Microsoft Corp. with a strategy that calls for deals with computer makers to give AOL products prominent placement on new PCs, the Washington Post reported on Thursday, citing internal AOL documents.
The newspaper said AOL was trying to complete the deals in time for the Oct. 25 debut of Windows XP, the latest update of Microsoft's operating system.
According to the Post, AOL wants manufacturers to give its software for online access greater prominence than Microsoft's MSN service. In return, AOL would pay the PC makers about $35 for each customer they nab for AOL's Internet access service, sources told the Post. AOL declined comment on the financial terms, the newspaper said.
The Post said AOL began advancing its new strategy about the same time a federal court ruled that Microsoft had abused its Windows monopoly. Microsoft said on July 11 that it would give computer makers more flexibility in placing icons on the desktop.
According to the Post, documents show AOL's strategy for Windows XP focuses on the "OOBE process," or the out-of-box experience, "the crucial moment when consumers turn on their machines for the first time and select what products and services they intend to use."
The Post quoted Microsoft as saying that AOL's actions were unprecedented and "anti-consumer."
"AOL is paying (computer makers) to eliminate consumer choice, forcing people to select the most expensive service in the industry," spokesman Vivek Varma was quoted as saying.
AOL spokesman John Buckley told the newspaper there was nothing unusual or improper about the deals the company was pursuing with computer makers.
The Post said Buckley declined to identify which computer makers AOL has approached, but sources were quoted as saying the list includes low-cost PC maker eMachines Inc. in Irvine, California, a company in which AOL holds a stake.
www.abcnews.com (http://www.abcnews.com)
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Manu Narayan
WASHINGTON (Reuters) - AOL Time Warner Inc. is going after Microsoft Corp. with a strategy that calls for deals with computer makers to give AOL products prominent placement on new PCs, the Washington Post reported on Thursday, citing internal AOL documents.
The newspaper said AOL was trying to complete the deals in time for the Oct. 25 debut of Windows XP, the latest update of Microsoft's operating system.
According to the Post, AOL wants manufacturers to give its software for online access greater prominence than Microsoft's MSN service. In return, AOL would pay the PC makers about $35 for each customer they nab for AOL's Internet access service, sources told the Post. AOL declined comment on the financial terms, the newspaper said.
The Post said AOL began advancing its new strategy about the same time a federal court ruled that Microsoft had abused its Windows monopoly. Microsoft said on July 11 that it would give computer makers more flexibility in placing icons on the desktop.
According to the Post, documents show AOL's strategy for Windows XP focuses on the "OOBE process," or the out-of-box experience, "the crucial moment when consumers turn on their machines for the first time and select what products and services they intend to use."
The Post quoted Microsoft as saying that AOL's actions were unprecedented and "anti-consumer."
"AOL is paying (computer makers) to eliminate consumer choice, forcing people to select the most expensive service in the industry," spokesman Vivek Varma was quoted as saying.
AOL spokesman John Buckley told the newspaper there was nothing unusual or improper about the deals the company was pursuing with computer makers.
The Post said Buckley declined to identify which computer makers AOL has approached, but sources were quoted as saying the list includes low-cost PC maker eMachines Inc. in Irvine, California, a company in which AOL holds a stake.
www.abcnews.com (http://www.abcnews.com)
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Manu Narayan