Primedia
revamps About.com to better target users
Primedia is overhauling its About.com internet portal in an effort to
draw in more readers and strengthen its brand identity. The provider
of consumer-focused information on topics such as travel, food and
health will keep its core Guide System, which features 23 content
channels and about 1 million pages of original content from more than
475 topical advisors. The new model will use behavioral targeting
technologies to capture user interests and automatically publish
customized pages that link relevant content with targeted ads. The
re-launch is part of a series of changes at Primedia, including the
hiring of chief executive Kelly Conlin in October and the sale of
such high-profile magazines as New York in an effort to focus more on
special interest and business-to-business publications. Primedia also
sold its online ad service Sprinks to search engine Google, which
will become the exclusive provider of targeted and search advertising
across About.com. About.com ranked the 14th most visited brand online
in March with 21.4 million unique visitors, according to Nielsen/Net
Ratings. Primedia bought About.com for about $690 million in 2000.
Still no deal on extending
internet tax ban
U.S. senators on both sides of
the aisle failed to reach a compromise yesterday on renewing the expired
ban on state and local taxation of internet services. Republicans and
Democrats were split
within their respective parties over the ban, which expired six
months ago. Proponents of lifting the ban, enacted in 1998, want to
provide another revenue opportunity for cash-strapped states and
localities. The ban would cover dial-up, DSL, broadband and satellite
services. Some senators are seeking to add extraneous amendments to
the bill. Senate Democratic leader Tom Daschle of South Dakota moved
to attach renewable fuel and ethanol production incentives to the tax
bill. Sen. Edward Kennedy also wants to use the bill to increase the
minimum wage.
Microsoft's cheaper Xbox is
hurting PS2 sales
Microsoft’s Xbox is
threatening a comeback against rival Sony’s PlayStation 2. Analysts
note that Sony might be forced to cut prices on the console to keep
its sales lead in the U.S. market. Sony forecast that PS2 sales in
the business year ending March 2005 would fall by as much as 30
percent, from 20.1 million to 14 million, a much sharper decline than
expected. PS2 sells for $179 in the U.S. Microsoft cut Xbox’s price
from $179 to $149 and saw sales double soon after. Xbox sales were
estimated at 275,000 units in April as opposed to 200,000 units for
PS2. Sony reports that PS2 unit shipments fell 37 percent in North
America over the last fiscal year.
Back to court for Napster
over past lawsuits
Even though it went legit, Napster is still in hot water over its
past life. Yesterday a federal judge in San Francisco set June 14 to
hear motions to dismiss lawsuits claiming investors in Napster kept
the song-swap site going in 2000, costing the music industry $17
billion in lost sales. Music publishers, songwriters and labels that
claim that German media company Bertelsmann AG’s $90 million
investment in Napster in 2000 kept the service operating eight months
longer than it would have done otherwise. Napster went bankrupt in
2002 and was bought by software firm Roxio, which relaunched it as a
pay-for-use service last year. Vivendi Universal's Universal Music
and EMI Group also sued venture capital firm Hummer Winblad, claiming
the $15-million investment and installation of a chief executive at
Napster in 2000 also promoted piracy.
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