Earlier, people on the PEN-L list asked what the economic aspect of the
story was. In essence, more portal services equals more users equals
greater ad revenue.
INTERNET PROVIDERS LOOK FOR PROFIT IN FREE ACCESS
The free-access movement has many wondering whether companies
will be able to effectively finance their free Internet services
without sacrificing consumer privacy. Free online access
providers, including such big names as Lycos, NBCi, ExciteAtHome,
and NetZero typically rely on revenue from advertising and
e-commerce to balance the absence of paying subscribers. Yet
some critics view this situation as damaging to user privacy,
since sites that offer free Internet service often require users
to reveal certain personal details and allow their Web activities
to be monitored. Others claim free access is a testament to the
evolution of the Internet and is a logical step given the
existence of portals and free e-mail. Executives at AOL and
Earthlink say they have little interest in offering free access
because doing so is not a viable, sustainable business model.
(New York Times, 6 March 2000)
