News Corp. and MCI Communications will launch a new online
service that will combine News Corp.'s Delphi Internet Services
Corp. with MCI's internet unit in an effort to compete with
America Online, CompuServe, Prodigy and eventually the Microsoft
Network. According to this morning's SAN JOSE MERCURY NEWS, the
new service will reportedly not require customers to use the
software it provides but allow subscribers to gain access through
any internet provider. MCI announced last May it would invest as
much as $2B in News Corp. to "jointly delivering entertainment,
information, home shopping and other services" (SAN JOSE MERCURY
NEWS, 8/9). This morning's AD AGE ONLINE reports that the new
service will have a "name the new net" contest, with the contest
winner receiving $5,000. Anthea Disney, former editor at TV
Guide will become editor and chief of the new service, Scott
Kurnit, former President of MCI Information Services Co., will
become President/CEO of the new service (AD AGE ONLINE, 8/9).
Disney said the service could include sports offerings that
leverage Fox's rights to the NFL, including "on-line visits from
star quarterbacks and host discussions for arm-chair
quarterbacks." The announcement signals that News Corp. "appears
to be putting Delphi in MCI's hands and letting MCI take the
lead," according to Jared Sandberg n this morning's WALL STREET
JOURNAL To enter the name the net contest, users may access:
http://www.internetmci.com/ venture (WALL STREET JOURNAL, 8/9).
JUSTICE RELENTS: The Justice Department said it will not
take anti-trust action against Microsoft before the launch of its
Windows '95, but is still "believed to be considering" whether to
ask Microsoft to remove software from the program that allows
users to enter the upcoming Microsoft Network [MSN] on-line
service, according to this morning's WALL STREET JOURNAL. Don
Clark reports that the Justice Department's announcement came
"just hours" after Microsoft announced its pricing structure for
the MSN. MSN will charge $4.95/month for three hours of service
and $2.50 for each additional hour, compared with the $9.95/month
for four hours charged by CompuServe, Prodigy and America Online
(WALL STREET JOURNAL, 8/9).
