Online entertainment suffered an important
setback earlier this year, although thats probably one piece of information the
advocates of an Internet-centric lifestyle overlooked.According to Variety of the week
of May 23, 1998 an article under the heading "Online Entertainment Crashes"
describes how the millions invested by Mircosoft to attract millions further millions of
PC-gazing websurfers and advertising dollars simply didnt materialize and that
Microsoft will terminate its online entertainment programming production efforts,
canceling several dozen Internet series it had funded through development and production.
According to a spokeperson for The Microsoft network, "Its a fair comment to
say that entertainment on the Internet did not pan out as expected."
Although online entertainment doesnt play a major role in the travel industry,
there are several lessons to be learned:
- The mystics continually predicting the convergence of television, computers, and
entertainment media generally may need to polish their crystal balls for the time being.
- We perhaps should reevaluate those predictions about how quickly The Internet will
filter through society and question predictions based upon how readily the public will
embrace online technology and services of all types (this is an important point).
- People basing business strategies upon paid subscription content (which is where most of
this online entertainment effort resided) would be advised to rethink their business plans
before going out for that next round of funding.
The "build it and hope for the best" business model, developed in isolation
of what customers say they are prepared to buy, didnt work here and places a major
damper on efforts to expand electronic travel commercedespite limited early
successes.