PointCast: Courting Content, Connections, and Corporations
The PointCast Network recently released the first Beta version of its 2.0 client for Windows 95 and NT, with a version for Windows 3. J due within weeks. The software publisher turned media aggregator added a number of new features that it hopes will increase the use and manageement of its technology. Through its PointCast Connections feature, the push pioneer will allow any Web site publisher to broadcast information to users of the 2.0 software. A new feature dubbed Studio allows Connections channel providers to produce their own PointCast content. The 2.0 release will make PointCast the first of the push providers to base its technology on Microsoft S Channel Definition Format (CDF) lechnology. Also included in the new release is a Corporate Broadcast Manager and Administrator to allow information technology (IT) mannagers to more closely control what corporate users can receive on their desktops. PointCast will also offer an Added Control client to enable managers to eliminate advertisements from broadcasts.
Munching on Media
With the release of its 2.0 version, PointCast continues its drive to mold itself into a media player, sepaarating it from its traditional competitors. During the 2.0 announcement, PointCast founder Chris Hassett reaffirmed that he will continue to mold his company into a media player. PointCast's media-centric strategy will help to distance itself from previous competitors Marimba and BackWeb, which have been focusing on technology. Also, in a move similar to AOL's hiring of MTV founder Bob Pittman, PointCast announced its intentions to hire a CEO out of the media industry to help chart its new course.
Free to Profit
PointCast's decision to give away its I-Server will likely have the long-term effect of boosting its revenue stream. The $995 I-Server program was initiated to allow companies to reduce network congestion and set up personalized channels. Because PointCast is discontinuing production of its I -Server and its new utilities will be freely available, it is likely that the software developer will feel the initial strains of lost revenue and investments in product development. But, the majority of the Cupertino, CA-based company's funding comes from advertisers looking for real estate on its channels. By giving away its I-Server, PointCast will likely increase distribution and, as a result, advertiser support.
Redmond's Reach
PointCast's partnership with Microsoft leverages PointCast's already extensive reach. Currently, Chris Hassett boasts 1.2 million users of his technology, a sizable lead over other vendors. When PointCast becomes a premier channel on Microsoft's Active Desktop, its network will evenntually have access to Microsoft's incredible reach through the PC sales chain. Marimba has partnered with Netscape and will be accessible with its Netcaster technology. While the Netscape client currently commands 58 percent of the market according to Jupiter's estimates, we believe that its market dominance will be significantly challenged with the release of Memphis, the next major version of Windows 95.
Courting Corporations
While PointCast assuages corporate clients, it is diversifying its content. With its 2.0 release, PointCast is making clear its intentions to concentrate heavily on this space. Tools such as the Studio (an animation tool for devellopers), the PointCast Corporate Broadcast Manager (enabling companies to broadcast information via intranets), and its new Administrator software (enabling corporate managers to preconfigure employee desktops) are all geared toward making corporate implementation of PointCast as easy as possible. But, beginning with version 2.0, the company will start to launch other media networks, starting with a college network and possibly a home-oriented version as well.
