MSN Launches $50 Mln Campaign To Woo AOL Customers

  • by May 29, 2001
Software giant Microsoft Corp. said today that its MSN Internet unit launched a $50 million advertising campaign designed to woo customers from rival AOL, a unit of the world's largest Internet and media company, AOL Time Warner Inc.

Following a price increase by AOL last week, the campaign is aiming to persuade consumers to drop that service and sign up for MSN Internet Access, the company said. The campaign will include nationwide advertisements and a limited-time promotional offer.

Microsoft said consumers who switch to MSN by June 30 will receive three months of free Internet access as well as a guaranteed rate of $21.95 a month until Jan. 1, 2003.

A week ago AOL Time Warner said it will raise the monthly price of its flagship service's unlimited use plan to $23.90 from $21.95 with the July billing cycle. It was the first price increase in three years for the plan, which gives subscribers unlimited access to AOL's services.

AOL had been hinting at a price increase for some time, and some analysts had said the move might be necessary for AOL Time Warner to meet its aggressive year-end growth targets in the wake of a slowdown in the overall advertising climate and growing economic uncertainty.

AOL Time Warner's shares closed at $53.53 on Friday on the New York Stock Exchange, the high end of a 52-week range of $31.75 to $63.19. Microsoft, which in the past year has ranged from $40.25 to $82.88, closed at $70.91.

Markets were closed on Monday for a national holiday.

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