In yet another indicator that commercial reality is at last seeping into the online sector, internet portal business Terra Lycos plans to adopt an all-paid business model.
Aiming to compensate for declining ad revenues, TL, one of the globe’s largest internet businesses, plans a major drive to increase the number of paying subscribers.
Its subsidiary Lycos Europe, which is listed on Frankfurt’s Neuer Markt, posted a narrowed loss of over £28 million in the quarter to March 31, compared with £54 million for the same period in 2000.
The cash haemorrhage had been stemmed, it said, by cuts in R&D, administration, marketing and advertising – although, unusually, no jobs had been cut; nor are there plans to do so.
Lycos Europe intends to introduce charges for some of its currently free services, especially financial products, which are already paid for elsewhere in Europe. Its mobile phone portal will also start to charge for some premium services.
News Source: CampaignLive (UK)