IP: Re: IP: MICROSOFT BUYS 9-MILLION-MEMBER HOTMAIL FOR FREE

[Dave Farber <farber () cis upenn edu>]

Sky is in an interesting position to evaluate the MS buy. 


Date: Sat, 03 Jan 1998 11:02:09 -0800
To: farber () cis upenn edu
From: Sky Dayton <sky () earthlink net>


Reality check on these HotMail/MSN vs. AOL comparisons: 9MM free HotMail
users is _not_ 9MM paying online service customers. According to the
company, only a small portion of HotMail's registered users actually use
the service. And the free ad model doesn't generate significant revenue, at
least by our standards.


It sounds like HotMail shareholders got a very rich deal. But it doesn't
really bolster MSN's existing base; hardly the same kind of customer (the
kind that actually generates revenue).


Sky



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