Lycos Arcade Goes Paid

Continuing its transition from free to fee, Terra Lycos has launched a subscription video
game service through its Gamesville on Demand section.

The offering allows users to play popular PC games such as “Roller Coaster Tycoon,” “Slingo” and “Centipede” at any time without purchasing the software.

“Our unique offering will attract a whole new audience of users who are looking to take advantage of their high speed connections with premium services,” said
Meredith Hanrahan, vice president of entertainment for Terra Lycos.

According to Jupiter research, more than 47 million consumers currently play PC games each month. And online gaming revenue is forecasted to grow from $210
million in 2001 to $2.5 billion by 2006. The Gamesville on Demand service is powered by Into Networks, a streaming software provider.

Terra Lycos, a Spanish Internet giant with U.S. operations in Waltham, Mass., outlined several pricing options for Gamesville on Demand. In addition to promotional
trials, they include: one game, seven days, $4.99; five games, 30 days, $7.99; or all games $14.99, 30 days.

The company, which operates a network of search, e-commerce, and information sites, has introduced paid services to offset the year-long slump in advertising revenue.
Other paid sites include Tripod, Angelfire, MatchMaker and Lycos InSite.

In related news, Terra Lycos also announced a new service targeting small
businesses and clubs. That deal is in conjunction with of Woburn, Mass.

Shares of TRLY rose 0.1, or 1 percent, to 7.93 at midday. In the last 52 weeks, the issue has ranged from 4.5 to 10.94.

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