[JA] Fw: NetZero Makes Strategic Changes Designed to Improve Financial Results
- From: "Roland Stiner" <nk2u@xxxxxxxxxxxxxx>
- To: "Juno Mail List" <juno_accmail@xxxxxxxxxxxxxxxxx>,"Internet Mail List" <internet@xxxxxxxxxxxx>
- Date: Wed, 1 Aug 2001 21:04:03 -0400
> NetZero Makes Strategic Changes Designed to Improve Financial
> Results
>
>
> WESTLAKE VILLAGE, Calif., Aug. 1, 2001 -- NetZero Inc. (Nasdaq:NZRO), a
> leading provider of Internet access services, today announced several
> actions designed to decrease costs and improve financial results.
>
> In particular, NetZero announced additional limitations on its free
> services and a reduction in personnel.
>
> NetZero is modifying its free service to provide households with 10
> hours of Internet access per month. Previously, the NetZero free
> service provided households with up to 40 hours of Internet access per
> month. In addition, NetZero's free service will no longer be offered in
> certain outlying areas where high telecommunications costs make the
> free offering cost prohibitive.
>
> However, NetZero will continue to offer users in these areas a
> subscription service for a monthly fee. The company will provide its
> users at least 30 days notice before implementing these changes, which
> are scheduled to go into effect on Oct. 1, 2001.
>
> In addition to its free service, NetZero also offers a quality,
> value-priced service called NetZero Platinum for $9.95 a month. NetZero
> Platinum does not have the banner advertising window included on
> NetZero's free service and has faster page loads than NetZero's free
> service. In addition, free users who desire to extend their monthly
> session for more than 10 hours can elect to purchase an ``Extended
> Access Pass'' for $9.95, which currently provides them with unlimited
> access for the remainder of the month.
>
> Approximately 3.4 million users accessed NetZero's services during June
> 2001, including 210,000 billable subscribers. During June 2001,
> approximately 30 percent of NetZero's free users accessed the Internet
> for more than 10 hours, and approximately 8 percent of NetZero's free
> users accessed the Internet solely from dial-up numbers where the free
> service will no longer be available.
>
> ``Our goal has always been to provide consumers with a quality product
> while creating value for our stockholders,'' said Mark R. Goldston,
> chairman, president and CEO of NetZero. ``The current dynamics of the
> online advertising market require that we reduce our reliance on
> advertising revenues. As such, we are modeling our free service to
> cater to the recreational user while offering all users a high-quality
> subscription pay service at less than half the price of the standard
> services of many of our competitors -- including AOL, Earthlink and The
> Microsoft Network.
>
> ``We intend to offer our free users the opportunity to sample, without
> any commitment, our NetZero Platinum service for certain periods during
> the month of September 2001. We believe that many of them will agree
> that NetZero Platinum is a fantastic product at an extremely attractive
> price. This will provide us with an opportunity to further grow our
> billable user base and increase our revenues. To the extent users elect
> not to subscribe to NetZero Platinum, we believe the changes to our
> free offering will result in a significant decrease in our
> telecommunications costs.''
>
> In an additional move by NetZero to further streamline its cost
> structure in response to changing market conditions, the company
> announced that it has reduced its employee base by approximately 26
> percent. The reductions included the company's first-ever layoffs,
> affecting 66 employees in six of its U.S. locations. Also included in
> the reductions are 27 employees at the company's RocketCash business,
> which was sold in a transaction that closed today, who remain employed
> at the RocketCash business under its new ownership.
>
> ``The decision to re-size our employee base was extremely difficult,''
> Goldston said. ``However, these actions, including the divestiture of
> RocketCash, are necessary steps that will enable us to streamline our
> operations and sharpen our focus on our core Internet access
> business.''
To unsubscribe, send a message to listar@xxxxxxxxxxxxxxxxx with
"unsubscribe juno_accmail" in the body or subject.
OR visit http://freelists.dhs.org
~*~
Other related posts:
- » [JA] Fw: NetZero Makes Strategic Changes Designed to Improve Financial Results
