CompuServe unveiled a new format Wednesday aimed at eliminating proprietary software and making the service more accessible from the Web. At the same time, a company spokesman confirmed to Wired News that even if CompuServe is sold off - as many believe will soon happen - the service will likely continue as an independent entity.
Choosing his words carefully, Steve Conway said that "it would be unwarranted to jump to the conclusion that if there were an agreement affecting the whole service, CompuServe would not continue." While declining to identify potential suitors, he said talks are proceeding on selling off all or part of CompuServe's assets, and that "there is nothing there that would lead you to believe the service will not continue."
Conway noted that CompuServe's shift to the Web - an initiative previously codenamed "Red Dog" - has been in the works since November, before the start of talks with possible buyers. If a buyer did not back the development, he said, the move could have been scotched weeks ago. "We are moving forward with the full expectation that CompuServe Interactive will continue," Conway observed.
Alexander Paris Jr., an analyst at Barrington Research, pointed out that by shifting its resources to the Web, CompuServe is distancing itself from America Online, which has been believed to be the leading candidate to purchase at least a portion of the company. AOL still barricades itself behind proprietary software, he noted, while The Microsoft Network has made advances toward more widespread accessibility.
Paris' read of Wednesday's format shift is that MSN, and not AOL, may be the one to watch for an acquisition of CompuServe. "The Microsoft Network has been moving toward the Web as well," he said. "America Online has chosen not to. This is not a move that indicates an imminent sale to America Online."
Whatever else, most analysts agree that the Web will of necessity play a greater role in the various online services' expansion plans for online services to essentially become vast, content-rich sites that members will reach via browsers and passwords.
CompuServe's approach is to refashion the service as a collection of 21 "communities," gathering content under such broad headings as business, computing, and shopping. Each community will offer a mix of exclusive content and links to related Web pages, with easy access between the two.
Conway said CompuServe is "definitely" looking to restructure its pricing plan to accommodate the new approach, with members paying substantially less to reach the service directly from the Web. The company now charges US$9.95 a month for five hours, plus $2.95 for each additional hour. One possibility is introducing different rate-plans for different levels of access, with members paying lower fees to access just one or two areas of particular interest.
Although the company will not release growth projections, Conway confirmed that CompuServe is aiming to increase its membership from the current 3 million subscribers.
On the technical side, CompuServe has decided to employ Microsoft Internet architecture in opening up to the Web, and to use "off-the-shelf" hardware in expanding infrastructure. "This really changes a lot of the rules of the game for an online service," Conway said. "Your only constraints are what people want, and what they'll pay for."
Along these lines, he said a series of other announcements will be made over ensuing weeks, leading up to the launching of an intensive marketing campaign later this year. "No matter what form an agreement [to sell the service] might take," Conway noted, "our expectation is that the CompuServe brand will continue."
