Partnership Agreement Signed
FUTURE NETWORK PLC
31 August 1999
Future and Netscape Online sign major partnership agreement
The Future Network plc ('Future'), the video game, home computing and other
specialist consumer magazines publisher which floated on the London Stock
Exchange in June, today announces that its new media division, FutureNet
(www.futurenet.com), has signed a major partnership agreement with Netscape
Online (www.netscapeonline.co.uk), the new subscription-free Internet service
from Europe's leading multinational Internet online service provider, AOL
Europe and its AOL UK division.
This announcement follows AOL Europe's successful launch last week in the UK
of its new Netscape Online service, which is targeted at the emerging UK
'value' market segment - predominantly under-35 'DIY Internet' enthusiasts.
Under this two-year agreement, Future will provide Netscape Online with a
major new distribution and promotion channel for its free Internet service.
Future will incorporate Netscape's ISP software on the CDs Future already
distributes with it UK magazines. Future will also provide an agreed amount
of advertorial and advertising space to Netscape within its UK magazines.
Future publishes over 60 specialist consumer magazines in the UK, selling 2.1
million copies in the UK each month.
Content will be supplied by Future's new media division, FutureNet, and will
focus on areas of interest to Netscape Online's target audience, including
games, technology, entertainment and sports news. This content will draw on
feature and news material from FutureNet's range of specialist consumer
websites (such as the games site futuregamer.com and the football site
ufn.co.uk) and Future's UK magazines (such as Official PlayStation Magazine,
Total Guitar and Total Football).
In return for these services, Future will share the telephony, advertising,
sponsorship, and eCommerce revenues generated from all customers that
subscribe to the Netscape Online service using software obtained from Future's
magazines. In addition, Future will be granted an 'anchor tenancy' sponsor's
flag on Netscape Online's home page, and will be the primary anchor tenant on
the games, technology, entertainment, and sport channels covering all
subscribers to Netscape Online from whatever source. These flags will enable
subscribers to link to Future's own websites.
Future anticipates that the close overlap between its own readers and Netscape
Online's target market means that these links with Netscape Online will
greatly
increase the number of visitors to its own websites, thereby providing
additional advertising, sponsorship and e-commerce opportunities for Future.
Future's existing online activities include the operation of over 18 magazine
websites, with a further three due for launch in the next four weeks, the
publication of an e-mail games newsletter and the creation of four web
networks focused on games, music and football.
Commenting on the deal, Future's Chief Executive, Greg Ingham said:
'Linking up with the world's leading Internet service provider gives Future's
online business a great boost. This partnership with AOL will greatly enhance
our own online visibility and provides us with an important new channel for
reaching our customers. We see this as a major, but still early step towards
unlocking the enormous potential that we believe exists for Future online.'
The President and Chief Executive Officer of AOL Europe, Andreas Schmidt,
said:
'This is yet another significant step in our Europe-wide multiple brand
strategy. AOL UK has added the Netscape Online service, a subscription-free
service, to our growing family of online brands to reach the new UK 'value'
market segment - under 35, predominantly single 'DIY Internet' users. The
readership profile for Future's magazines is a perfect fit for this emerging
and distinct online audience.'
Karen Thomson, Managing Director of AOL UK added:
'AOL UK's alliance with Kingfisher, through its Woolworths shops, has already
put the Netscape Online brand on 800 High Streets across the UK. Our
relationship with Future means we now have an unrivalled opportunity to reach
more than 2.1 million potential new subscribers every month through some of
the UK's most popular consumer magazines.
'The content aspect of this partnership is equally important to us. Netscape
Online subscribers will now be able to reach top-quality online content
prepared by Future's leading world-team of more than 800 editors specialising
in game, technology, entertainment and sports news. We believe that our
growing network of alliances with some of the UK's leading families of brands
- added to the enormous market resonance of the Netscape name - will ensure
that Netscape Online will quickly become a leading subscription-free Internet
Service Provider in the UK.'
Mark Gross, President of Future' global Internet business, FutureNet, added:
'This deal puts Future at the centre of online activities in the UK. We are
not an Internet service provider nor do we want to be one, but this
partnership enables us to capitalise on the revenue streams associated with
free ISPs without the associated risks. Our unique content will help attract
and retain subscribers to Netscape's portal, thereby driving advertising and
e-
commerce opportunities. By linking up with AOL we will benefit from their
years of leadership and experience as the world's pre-eminent ISP and consumer
service and expect to significantly enhance our website traffic as a result of
our exposure through Netscape Online. This is just the beginning of an
exciting new area for Future and FutureNet, and I anticipate being able to
announce further deals and developments in the months ahead.
For further information:
Greg Ingham, Chief Executive Tel: 01225 442244
The Future Network plc
Mark Gross, President Tel: 001 415 468 4684
FutureNet
Rachel O'Neill Tel: 0171 348 8358
Rebecca Woods Tel: 0181 237 4003
Netscape Online
James Longfield/Harriet Keen Tel: 0171 357 9477
Hogarth Partnership
Background on The Future Network:
The Future Network was founded in the UK in 1985. Since this time it has
become a leading international publisher of video game, home computing and
other specialist consumer magazines and Internet web sites. Future is the
UK's 4th largest consumer magazine publisher and is the leading video game and
home computing magazine publisher in the UK, France, Italy and the US.
Headquartered in Bath, England, Future publishes over 100 titles worldwide and
employs over 1,200 people in offices in Bath, London, San Francisco, New York,
Paris, Milan and Munich. Future was floated on the London Stock Exchange on
25 June 1999 and has a current market capitalisation in excess of £630
million.
Background on FutureNet:
FutureNet is The Future Network's global Internet business, currently serving
the PC, Mac, Games, Music, and Football communities in the U.S. and the U.K.
with sites like maximumpc.com, macdaily.com, samplenet.co.uk, and ufn.co.uk.
FutureNet provides rich, community and information-based services to people in
these and related markets worldwide. The FutureNet model is simple: Aggregate
content (from our magazines and affiliated sites) and provide services (such
as auctions, email and discussion forums) to build high traffic in
concentrated areas that will be of great value to marketers. FutureNet plans
to role out in Germany, France, and Italy, other Future Network territories,
next year.
Background on AOL Europe:
AOL Europe was formed in late 1995 as a joint venture between America Online
Inc. and Bertelsmann AG, the world's third largest media group. From the first
service launch in 1996, it has grown to 2.7 million households in just over 3
years, making it the largest European internet online service.
AOL Europe is committed to the same multiple-brand strategy successfully
developed by AOL in the US. AOL Europe manages all of AOL's, CompuServe's and
Netscape Online's European services across 9 countries as well as its Web
brand, AOL Instant Messenger. It employs almost 2000 people, including close
to 1400 in customer services roles.
Background on Netscape Online
Netscape Online, AOL UK's subscription-free online service, is targeted at the
'value' sector and provides pure, high performance internet access backed by
the powerful Netscape brand and AOL infrastructure. AOL is the service for the
whole family, providing its members with interactive entertainment,
information and education services while providing access to a global online
community. CompuServe is aimed at the corporate customer and professional
user, offering specialised information, large-scale databases, unmatched
forums and professional communications tools. AOL Instant Messenger provides
free, real-time communications to internet users.
For further information or images, please contact Rachel O'Neill or Rebecca
Woods.
** Additional note **
In headlines and stories, the proper usage of our corporate name is: 'AOL
Europe, a venture between America Online, Inc. and Bertelsmann AG,' or 'AOL
UK, a division of AOL Europe.' We appreciate strict adherence to this usage.