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| Giants of the Internet
Giants of the Internet
Giants Of The
Internet
The History of the Internet
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In the year 1969 the Advanced Research Projects Agency
(ARPA) assigned the US Ministry of Defence to create a computer net, which
should firstly ensure the communication in case of a nuclear attack and secondly
enable the collaboration between several research institutes.
The ARPANET was created that way and was soon the link
between several American universities.
How we experience the Internet nowadays cannot be
compared with the net from the past of course. The two most important Internet
services are eMail, the transmission of written messages between two places via
the digital way, and the World Wide Web, the part of the net we call the
Internet.
In the 80s the PC established its position in the
private sector more and more and the interest on the ARPANET rose. The Internet
Society initiated the WWW in 1992, and new branches of business arose,
especially the providers.
The biggest providers nowadays are AOL (America
Online) with 24 million users, CompuServe with 2.8 million users and MSN
(Microsoft Network) with 1.6 million users worldwide.
Major Internet companies
AltaVista, Amazon, America Online, Cisco Systems,
CNET, eBay, ICQ, Inktomi, Terra Lycos, Netscape, VeriSign,
Yahoo!
NetCoaltion.com
On July 12, 1999 nine major Internet companies formed
a lobbying group to “speak with a clear, distinct voice for the concerns
and interests of the industry.” The members of the organization, called
NetCoaltion.com, are Amazon.com Inc., America Online Inc., DoubleClick, eBay
Inc., Excite@Home Corp., Inktomi Inc., Lycos Inc., theglobe.com and Yahoo Inc.
Ninety percent of the world's Internet users visit at least one of these sites
each month. NetCoaltion wants to build user confidence in the Internet through
responsible market-driven policies, wants to preserve the open and competitive
environment that has allowed the Internet to flourish and wants to ensure the
continued vitality of the Internet through active dialogue with
policymakers.
Considering that some of this organization’s
members are the most powerful on the Internet, these aims sound beyond
belief.
AOL – America Online Inc.
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America Online is now the biggest, richest and most
successful Internet company in the world. That is because it is one of the few
Internet companies that has actually figured out how to make money on the web -
by charging individuals monthly subscriptions to sign up to their Internet
services, and by charging companies to advertise their services. More than 24
million subscribers pay a monthly fee of about $20 to access the Internet, there
are an additional 2.8 million people subscribing to its CompuServe subsidiary,
and 4.4 million international members.
AOL started with the foundation of Quantum Computer
Services in 1985. By 1994, after changing its name, AOL had a million
subscribers already. In the early years it was almost brought down by the
problems of introducing unlimited access for a fixed monthly fee. As usage
increased, so did capacity problems, making thousands of customers angry as they
could not get their connection to work. The problem was solved by a deal with
MCIWorldCom and a merger with rival CompuServe in 1998. AOL further strengthened
its position in 1998 when it acquired Netscape, the Internet browser company,
for $4 billion. The company also had to fend off rivals, most notably AT&T,
the biggest US telephone company, which tried to take over AOL in order to
launch its own Internet services. In 1999 AOL reached 20 million subscribers and
in 2000 merged with Time Warner, which was one of the biggest deals ever. Both
companies hope that AOL's huge user base will provide fertile ground for online
marketing and e-commerce, i.e. selling Time Warner products like books and CDs.
Time Warner describes itself as one of the world's
leading media companies. It owns the cable television channels CNN, TNT, Cartoon
Network and Home Box Office and is a publisher of magazines, books and web
sites. In 1999, AOL “shocked” the online world when it bought the
Internet pioneer Netscape. Other brands owned by the company are Internet
messaging service ICQ and Digital City. AOL has a strategic alliance with
computer and software firm Sun Microsystems, too, targeted to undermine the
dominance of Microsoft in the computer business.
Facts: Headquarters in Virginia, 15 000 employees,
2000: revenue $ 6.89 billion, 24 million AOL members, 2.8 million CompuServe
members, 4.4m international members
Revenues from eCommerce now make up one third of AOL's
revenue. It has commercial deals to market everything from General Motors cars
to financial services to computers with Compaq and Gateway. It is also planning
to be part of the Internet's mobile revolution, ensuring that it will be on
Motorola mobile phones and Palm Pilot handheld computers. One of the biggest
fears of AOL has been that it will be excluded from the broadband revolution,
which allows Internet services to be delivered at much higher speeds than
currently available from dial-up modems. They allow the delivery of
video-on-demand, interactive conferences and gaming, and swift downloads at a
cost little more than that of AOL's subscription charge. Now that AOL has tied
up with one of the main providers of high-speed cable Internet access, Time
Warner's Road Runner service, it remains to be seen how much it will continue to
fight for the principle of open access. AOL meanwhile has also invested heavily
in other ways of delivering broadband services, both through conventional
telephone lines and satellite television in the US. Recently AOL has tried to
expand its overseas activities, in the expectation that in the next few years
the Internet will grow faster in Asia, Europe, and Latin America than the US.
But it has not been as successful abroad as in its home market in the United
States, where it has a dominant position. That is partly because of the
different system of telephone charges, which means that it is more difficult to
offer unlimited access for a flat fee - which works in the US because there are
no additional telephone charges to pay, as local calls are free.
AOL Brands and Services
All Chats (various chatrooms and discussions),
Hometown (free homepages), Instant Messenger (free communication software AIM
4.3), Legal Department (online service about court decisions)
CompuServe (ISP), ICQ, Netscape, Digital Cities Guides
(information on popular cities), MapQuest (detailed interactive maps of major
cities), Moviefone (previews and reviews of the latest releases including chats
and online ticketing function), Spinner.com (internet radio with various
channels), WinAmp MPEG audio player
News
November 22, 2000: AOL Latin America announced the
availability of a regional Web portal, which provides access to visitors from 20
latin American countries.
November 30, 2000: AOL unveiled the new AOL Mobile
Communicator (SM), a two-way wireless handheld device. That way AOL members can
take e-mail and instant messaging “anywhere”. It is a small,
lightweight (4.1 ounces) device, only available to AOL’s members, who
wants to make the interactive medium central to their everyday lives. It has a
built-in mini-keyboard, which makes it quick and easy to type messages or write
eMails. AOL said: "That's what we deliver with the AOL Mobile Communicator:
We're no longer talking about an
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strategy - we're making AOL Anywhere a reality."
Steve Case: Chairman of AOL Time Warner, former AOL
CEO and co-founder
Yahoo! Inc.
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Yahoo! Began – like many other parts of the
computer age – as an idea, grew into a hobby and turned into full-time
business. The two developers were David Filo and Jerry Yang. They started a kind
of guide in April 1994 as a way to keep track of their personal interests on the
Internet. Soon their lists became too long and unwieldy, so they turned it into
a database designed to serve the needs of thousands of users. The name Yahoo! is
supposed to stand for "Yet Another Hierarchical Officious Oracle" but Filo and
Yang insist they selected the name because they considered themselves yahoos.
Yahoo! itself first resided on Yang's student workstation, "akebono" while the
search engine was lodged on Filo's computer, "konishiki." (These machines were
named after legendary Hawaiian sumo wrestlers.) They developed customised
software to help them efficiently locate, identify and edit material stored on
the Internet. In early 1995 Marc Andreessen, co-founder of Netscape
Communications, invited Filo and Yang to move their files over to larger
computers housed at Netscape. Today, Yahoo! contains organised information on
tens of thousands of computers linked to the Web.
Yahoo! Inc. is a global Internet communications,
commerce and media company that offers a branded network of services to more
than 166 million individuals each month worldwide. As the first online
navigational guide to the Web, www.yahoo.com is the leading guide in terms of
traffic, advertising, household and business user reach, and is one of the most
recognised brands associated with the Internet. The company also provides online
business services designed to enhance the Web presence of Yahoo!'s clients,
including audio and video streaming, store hosting and management, and Web site
tools and services. The company's global Web network includes 25 World
properties. Yahoo! has offices in Europe, the Asia Pacific, Latin America,
Canada and the United States, and is headquartered in Santa Clara,
California.
Services: Chat, Mail, Auctions, Shopping, Movies,
Sports, Finance, Messenger, Photos, Travel, Pay Direct,
Entertainment
News
March 21, 2000: Yahoo! Mail and Yahoo! Messenger
delivers Web services to Palm Handheld Computers
June 29, 2000: Yahoo! Launched the Yahoo! Player, a
streaming media player for playing music and video
October 10, 2000: Yahoo! introduced Free Voice Access
to content and services, Voice Mail and PC-to-Phone Calling
Consumers
November 22, 2000: Yahoo! Shopping goes mobile, it is
available on Web-enabled phones
Jerry Yang: Chief Yahoo and
co-founder
Lycos Inc. -> Terra Lycos Inc.
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The Lycos Network is currently one of the most visited
hubs on the Internet reaching one out of every two Web users. Its network of
sites includes Lycos.com, Tripod, Angelfire, WhoWhere, Lycos Communications,
HotBot, HotWired, Wired News, Webmonkey, Quote.com, Sonique, Gamesville, and
Matchmaker.com.
The Lycos Network provides leading Web search and
navigation, communications and personalization tools, homepage building and Web
community services and a shopping center. Integrated, these sites help each
individual user locate, retrieve and manage information about his or her
personal interests. Lycos believes that communities are at the core of the hub.
An Internet community personalises the Web, allowing people with common
interests to seamlessly find, communicate and collaborate with each other,
acting as participants, rather than observers. An online community personalises
the Web, enabling members to have individual relationships in a global medium.
Through its acquisitions of Tripod Inc., and WhoWhere Inc., in 1998, the Lycos
Network has become the largest and fastest growing online community with more
than 5 million registered Tripod and Angelfire members. 201 million average
daily page views worldwide. More than 61 million registered users
worldwide.
Founded in June 1995, Lycos was one of the earliest
search and navigation sites designed to help people find information more easily
and quickly on the World Wide Web. In May 1997, Lycos began its international
career through a joint venture with European media house Bertelsmann. In
February 1998, Lycos acquired Tripod Inc., the leading community site on the
Web. With the acquisition of Tripod, Lycos became the most full-featured
community-oriented home base on the Internet, providing free homepages to all
users. In April 1998, Lycos extended its international dominance through a
partnership with Sumitomo Corporation in Japan to bring localised Lycos services
to Japan. The acquisition of WiseWire in April 1998 and integration of its
technology also established Lycos as the only online service in its category to
provide its users with both a World Wide Web search engine and directory. In
August 1998, Lycos took another significant step in its move to become the
leading online service by acquiring GuestWorld, the Web’s largest provider
of free online guestbook services. In August 1998, Lycos again improved its
audience reach and strengthened its position as a premier Web destination by
acquiring WhoWhere Inc.and its complete line of Web-based applications,
including its leading directory services, popular MailCity e-mail service and
Angelfire.com, a leading Web community. In October 1998, Lycos signed a
definitive agreement to acquire Wired Digital Inc., including HotBot, a leading
Web site renowned for search excellence. In February 1999, Lycos announced the
audience reach of the Lycos Network had risen to 48.8 percent, according to the
Media Metrix report of January traffic figures. With 27.1 percent up in ten
months the Lycos Network is the fastest-growing Web portal. In March 1999, Lycos
formed a joint venture with Mirae Corporation to bring localised versions of
Lycos.com, Tripod and MailCity to Korea. In April 1999, Lycos announced the
Lycos Network had surpassed the Yahoo sites to become the most visited hub on
the Web. In August 1999 Lycos acquired Internet Music Distribution Inc., maker
of Sonique. Sonique is a popular audio players, supporting many audio formats
including mp3. In September 1999 Lycos acquired Quote.com Inc., one of the
Web’s most comprehensive financial information destinations. In October
1999, Lycos announced its entrance into the Latin American market with the
launch of 14 Lycos.com and Tripod.com country-specific localised sites for Latin
America, and two sites for the Spanish-speaking population in the United States.
In November 1999 Lycos signed a definitive agreement to acquire Gamesville.com,
a leading interactive entertainment company and direct marketer. Gamesville
reaches 4.5 percent of the monthly Web audience.
News
September 27, 2000: Lycos launched a WAP directory for
mobile users
October 10, 2000: Together with BMG Entertainment
Lycos Music makes albums and singles digitally available. The two companies want
to work closely together to create and promote digital music content on the
Internet.
December 6, 2000: Terra Lycos and Headhunter.net, a
recruiting site, signed a multi-million dollar agreement for a new co-branded
site.
October 31, 2000: Terra Networks, S.A. and Lycos, Inc.
announced the companies have completed their combination announced in May. The
new shares are expected to begin trading on the Nasdaq National Market and the
Spanish stock exchanges on Tuesday, October 31, 2000.
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About Terra Lycos
Terra
Lycos is a new global Internet network operating in 40 countries in 19
languages, reaching 91 million unique monthly visitors worldwide. Created by the
combination of Terra Networks S.A. and Lycos Inc., Terra Lycos is one of the
most popular Internet networks in the U.S., Europe and Asia, is the leading
portal to Spanish- and Portuguese-speaking markets, and is the number three
access provider in the world. The Terra Lycos network of sites includes
Lycos.com, Terra.com, Angelfire.com, ATuHora.com, Gamesville.com, HotBot.com,
htmlGEAR.com, Invertia.com, LycosZone.com, Matchmaker.com, Quote.com, Rumbo.com,
Sonique.com, Tripod.com, Webmonkey.com, WhoWhere.com and Wired.com. The
company’s corporate headquarters are in Barcelona, Spain and its operating
headquarters are in Waltham, Mass.
Juan Villalonga: Chairman of Terra Lycos, former
chairman of Terra Networks and Telefonica
Robert J. Davis: CEO Terra Lycos, former president and
CEO of Lycos, Inc.
Conclusion
Times of Web anarchy are definitely over, and it is
not that easy anymore to start up a company on the Internet.
And the “war” between the Giants of the
Internet is going on: Providing paid access to the Internet will get
unimportant, because Internet for free will rise in the next years like in the
US.
The aim will be to have as many users as possible, who
are on the company’s own sites as often and as long as possible –
because then advertising customers will pay higher prices.
And the best formula for catching users is Content
& Commerce: providing interesting content and good online shopping
possibilities.
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