MSN Splits Into Two Divisions

REDMOND, Wash. -- Microsoft Corp. announced plans this week to split its MSN division into a software unit and a communications unit.

The decision reportedly comes on the heels of a growing MSN deficit, $92 million to be exact, as reported in Microsoft's latest quarter, and the increasing belief that MSN is an effective online portal, but that its failure as an Internet Service Provider (ISP) has been too costly.

MSN was originally created in 1995 to eclipse AOL's control of the dial-up Internet market, although it was never able to compete with the Time Warner division and instead fell into a long line of similar, second-rate ISPs.

MSN also managed to transform itself into an online portal that attracted volumes of subscribers, but it was never able to even skim the surface of AOL's monopoly.

As the popularity of high-speed Internet access took hold, MSN began to slip even farther behind its competitor and failed to maintain necessary profit margins.

According to reports, even a $300 million marketing campaign last year couldn't save the division, and it soon lost an estimated 400,000 subscribers to other services.

Research firm IDC predicted earlier this year that Microsoft would eventually sell off its meager portion of the Internet market to another service provider, and in many ways, reports out of Redmond suggest a similar move.

While MSN will still keep one foot in the dial-up business, Microsoft intends to more directly target the riches of the broadband telecommunications industry.

According to Microsoft, it will divide MSN's communications services, which includes its dial-up and DSL services, Hotmail, Passport, and MSN Messenger, and MSN's information services, which includes the MSN portal, search functions, and ecommerce.

Microsoft has appointed Yusuf Mehdi to helm operations on the software side and Blake Irving as head of the communications side. Mehdi will also head up Microsoft's attempts to create an online music store and further its web search technology.

In September of this year, Microsoft shut down all of its unmoderated MSN chat rooms in 28 countries worldwide, including Europe, the Middle East, Africa, Asia, and parts of Latin America.

At the time, Microsoft said it was trying to curb the amount of illegal activity and adult content that circulated through those chat rooms. The company also stated that its decision was based on legal issues and a persistent drain on company resources.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Australian Conservatives Raise Concerns About US-Born Online Censor

Long after progressive free speech advocates in Australia questioned E-Safety Commissioner Julie Inman Grant over her campaigns to target adult content, conservatives and libertarians are now raising concerns about the powers granted to the country’s top censor — an unelected former tech exec born in the U.S. — with some calling for her ouster.

Cupcake Girls, Aylo Partner on Educational Video Series for Performers

The Cupcake Girls and Aylo are partnering to produce a series of educational videos focused on safety standards for adult performers.

My.Club Appoints Nicole Aniston Newest Brand Ambassador

My.Club has named Nicole Aniston its newest brand ambassador.

Elevated X Implements Age Verification Solution, Integration API

Elevated X is now offering age verification services (AVS) through an API.

MojoHost Unveils 'Star Wars Day' Promo

MojoHost will celebrate “Star Wars Day” on Saturday by offering a special discount on new purchases of dedicated servers, VPS and CDN prepay plans throughout the month of May.

2024 XBIZ Miami Show Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Miami, the adult industry's biggest summer conference, set to take place May 13-16.

Video: FSC's Alison Boden Testifies Before California Assembly Committee Regarding Age Verification

Free Speech Coalition Executive Director Alison Boden testified before the California Assembly Judiciary Committee on Tuesday, in opposition to the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Princess Mindy Is LoyalFans' 'Featured Creator' for May

LoyalFans has named Princess Mindy as its Featured Creator for May.

Republicans Behind Oklahoma's New Age Verification Law Gleeful About Potential Pornhub 'Exit'

Republican Gov. Kevin Stitt has signed into law Oklahoma’s version of the age verification legislation being sponsored around the country by anti-porn religious conservative activists.

Woodhull Freedom Foundation Debuts 'Fact Checked by Woodhull' Program

The Woodhull Freedom Foundation has launched its new "Fact Checked by Woodhull" program, which uses peer-reviewed research, compiled and analyzed by professional researchers, to debunk myths weaponized to justify the repression of sex, sexuality and gender expression.

Show More