Charles Schwab & Co., Inc.

Internet Daily for Monday, June 4, 2001
by Frank Barnako CBS MarketWatch.com

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Four sites attract 50.4% of Web usage

Web properties operated by AOL Time Warner, Microsoft, Yahoo and
Napster accounted for half of the time spent online by U.S. Web
users in March, according to a report issued Monday by Jupiter
Media Metrix . The data "show an irrefutable trend toward online
media consolidation and indicate that the playing field is
anything but even," said Aram Sinnreich, senior analyst with
Jupiter Media Metrix.  Sinnreich added that the results dispel
any myth that "severe market dominance is impossible on the
Internet."

Two years ago, 11 companies held half of all Web use. AOL's sites
garnered 32% of minutes spent online, with two-thirds made up of
such communications services as e-mail and Instant Messaging,
followed by Microsoft at 7.5%, Yahoo at 7.2%, and renegade online
music site Napster at 3.6%. Meanwhile, U.S. Web usage continued
to grow for the latest month, reaching 107 billion online minutes
from 73 billion in March 2000 and 50 billion in March 1999,
Jupiter reported.

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Inside Inside.com

Inside.com's efforts to sell subscriptions didn't even come close
to making money, writes Ken Auletta in the latest issue of The
New Yorker. The media-beat journalist, profiling Inside.com, said
a company insider told him only 1,200 people subscribed to the
Web-based content service. A partner later told Auletta the
number "was closer to 5,000." Inside.com founder Kurt Andersen
will soon leave the venture, recently purchased by Brill Media
Holdings, but is reluctant to conclude the project was a failure,
telling Auletta: "There are no precedents, and no comparables.
People are making it up as they go along."

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No sale for online billing

Internet users are showing little appetite for receiving and
paying bills online. An estimated 3 million Web users, or about
2%, use the Internet for such transactions, technology consulting
firm Gartner Group said in a New York Times report. "It may be
rather bleak for companies looking to make a business out of
this," Gartner Research Director Susan Landry told the
newspaper.

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Satellite-based Web services get static

Lockheed Martin Corp. and Hughes Electronics Corp. reportedly are
scaling back plans to provide Internet service from space.
Industry sources quoted by The Wall Street Journal say both firms
are having trouble finding partners to help finance the projects.
They "are having difficulty accessing money," and the "lack of
financing [options] is very badly impacting" start-ups as well as
established players, said Jean-Francois Gambart, a vice president
in the space unit of France's Alcatel .

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AOL plans JV in China

America Online and China's biggest PC maker, Legend, will become
partners to provide Internet access services, according to The
Asian Wall Street Journal. However, an executive at Legend said,
"It's not convenient to disclose anything before the contract is
signed." China's Ministry of Information Industry estimates there
are 30 million Internet users in the country.

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Deal of the day

Consumer Reports said its auto-buying guides will be offered
through Yahoo's shopping area, marking the first time the data
will be available outside the publication's ConsumerReports.org
site. CR's product rating content will be sold through Yahoo on a
per-view basis, with the Web portal receiving a share of the
revenue.

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