Internet Market Close Report for 1998.01.08

ISDEX & Market Moves

  08-Jan-98 % change point change
ISDEX Geo. Avg. 101.79 0.26% 0.26
NASDAQ 1,555.54 -0.39% -6.16
DJIA 7,802.62 -1.26% -99.65

  • Excite (NASDAQ:XCIT) signs a deal with CyberMeals whereby the order online and get delivered to your door food service will pay Excite $15.5 million over four years. Excite also gets a cut of sales for allowing CyberMeals to be exclusive takeout food service on its network.

    As we’ve said for more than two years now (how times flies!) Yahoo, Excite and Lycos may very well be poised to become the “networks” of the Internet era. “ABC, NBC and CBS,” if you will. Only much more powerful because of interaction and personalization that the broadcasters can only dream of.

  • CBS.Sportsline USA (NASDAQ:SPLN) gets a “buy” rating from BancAmerica Robertson Stephens based on CBS TV promo of the Web service as tie in to its sports, especially the upcoming Winter Olympics. BARS forecasts $0.70 EPS in 2000 with $85M revenues. We think that’s conservative. CBS TV reaches 240 million Americans. If by 2000 30% of them have Web access (WebTV, digital TV, or PC), that’s 72 million Americans CBS could reach with a hybrid content TV/Web service.

    If 15% use regularly that’s 10.8 million users. AOL just sold 10 million reach to Tel-Save for $100 million. What could a CBS TV, combo fetch in a package deal that’s cross media? How about an advertiser/marketer wanting TV-Web reach in one go? Even AOL doesn’t have that much leverage. Benchmark for marketers: to reach Web users it’ll cost about $10 a head. That’s cheap.

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