Soaring usage of the Internet and its World Wide Web is rapidly devaluing the franchises of the proprietary on-line services, and the Big Three are having to scramble to add value to their services in order to stave off the threat of becoming marginalised. Yesterday, Vienna, Virginia-based America Online Inc announced that was moving to enhance its content by acquiring two privately-held companies, CD-ROM publisher Medior Inc for $30m and Internet publishing company WAIS Inc for about $15m, paying in shares in each case. Medior, based in San Mateo, California, has produced over 150 CD-ROM titles, and WAIS – Wide Area Information Servers – has assisted companies such as Encyclopaedia Britannica and Dow Jones & Co to put information on the World Wide Web. America Online also announced several alliances with CD-ROM publishers in the entertainment, publishing, game and educational markets, planning to incorporate their content into on its on-line service. The companies are Broderbund Software Inc; the Hachette Filipacchi Magazines affiliate of Matra-Hachette SA; Compton’s NewMedia Inc; Virgin Interactive Entertainment Inc; Novell Inc; SoftKey Software Products Inc; the 2Market joint venture developed by Medior; Midisoft Inc and MindQ Publishing Inc. It will offer one-button access to new services and create CD-ROMs to highlight content of a specific publisher.
