Sale of rest of Compuserve is delayed by H&R Block; loss of subscribers and poor results blamed
Article Abstract:
H & R Block postpones the sale of its 80% stake in Compuserve, attributing the delay to Compuserve losses and instability in the on-line information services market. The losses come in part from rise of the Internet and from competition from America Online. In 1994, Compuserve had 2.1 million subscribers, compared to America Online's 1.5 million. In 1996, America Online has 6.2 million subscribers, while Compuserve has about 3 million and loses 10,000 members each day. For the quarter ending Jul 1996, Compuserve lost $17.1 million and cut 4% of its staff. Analysts say H & R Block's decision was to be expected, although one analyst contends that Compuserve is still powerful and holds a strong position in the European market, where it already has 790,000 subscribers. Analysts advise Compuserve to publicize and possibly split off its corporate networking services, which generated almost 25% of the company's $793 million FY 1996 revenue.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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On-line service blocks access to topics called pornographic; complaint by Germany has worldwide impact
Article Abstract:
Compuserve blocks access to approximately 200 Usenet groups after a German federal prosecutor claims that their content violates that country's pornography laws. The company must block access to all users, both in the US and abroad, because it does not have the technology to screen content on a country-by-country basis. Although Compuserve claims its action is temporary and designed to give it the company time to determine its legal options, the move illustrates that the Internet belongs to no one country. Free speech advocates point out that permitting one country to dictate Internet content could set a dangerous precedent. Critics also claim that the targeted sites not only include discussions of pornography, but also of topics, including homosexuality, that are not intrinsically pornographic or harmful to children. Compuserve is the second-largest on-line service in the US, but it has four million subscribers in 140 countries.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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3 are arrested on evidence from an Internet wiretap
Article Abstract:
The Secret Service, the Drug Enforcement Administration and the United States Attorney in Brooklyn use the first court-approved Internet wiretap to investigate the illegal sale of electronic equipment. The court allowed federal agents to examine the E-mail account that chief suspect Bernhard Bowitz maintained on CompuServe. The company says the investigation marks the first time it has allowed federal employees to access an E-mail account and also states that it plans to comply with any future subpoenas or official requests. The federal agents began their investigation after receiving complaints that a World Wide Web site was advertising the sale of cellular telephones that employ stolen numbers and eavesdropping equipment. Federal agents have previously examined Internet communications only with the cooperation of other Internet providers or users. Rachel Bowitz and Gregory Brooks were also arrested.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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