Can Prodigy be all things to 15 million PC owners? Its strategy is to offer hundreds of on-line features. So far, it hasn't made a dime

Article Abstract:

Prodigy Services Co, the joint venture involving IBM and Sears, Roebuck & Co, now offers more than 800 on-line features to 550,000 subscribers, charging a flat monthly fee of $12.95. Prodigy is the leader in the industry, accounting for 41.4 percent of the market. Lately, however, Prodigy has encountered problems: a decision to impose charges for an electronic mail service, for example, caused subscriber complaints and even legal difficulties; and it was thought for a time that there was a 'software glitch' that allowed the company to gain access to subscribers' files; and a grocery shopping service has been dropped because of lack of interest. Overall, some analysts believe that Prodigy is trying to do too many different things for too many different people. According to one industry observer, in its attempt to mass-market on-line services, Prodigy has been 'a mile wide and an inch deep.'

Electronic computers, Department stores, Catalog and mail-order houses, Management, Joint ventures, International Business Machines Corp., IBM, Sears, Roebuck and Co., S, Online, Company Profile

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Prodigy plans new features to attract more customers

Article Abstract:

Prodigy Services Co is enhancing its Prodigy videotex information utility service to attract more subscribers and compete with CompuServe Information Services. With 465,000 subscribers, Prodigy is the second biggest computer information service after CompuServe, but it faces additional competition from General Electric Co's new service, dubbed Genie. To improve its market share, Prodigy is adding the Mobil Travel Guide, Zagat's Restaurant Survey and an electronic encyclopedia. Prodigy also plans an intensive advertising campaign for fall 1990 in an attempt to gain subscribers in small towns and other areas beyond the major metropolitan markets. Prodigy hopes that the added services and increased marketing effort can make the flat-rate home shopping and information service profitable for the first time.

Marketing, Online information services, Product enhancement, Marketing Strategy, Online Information Service, Prodigy (Videotex system)

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Electronic ads offered by USA Today, Prodigy

Article Abstract:

Prodigy Services Co and the USA Today newspaper begin an electronic advertising service in 1991 that will reach nearly one million people. Newspapers have attempted to break into electronic advertising since 1979 but have been largely unsuccessful because there were not enough households with microcomputers connected to modems. USA Today and Prodigy's efforts are being watched closely by other newspapers; Prodigy's one million subscriber base offers new potential. Advertisers will pay $120 a year to join the Prodigy network and $60 a week to run their ads. Advertisers will receive responses via electronic mail.

Newspapers, Innovations, Advertising, Classified advertising, Gannett Company Inc. USA Today, Trends, Advertising (Industry)

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