United Online Playing Games in the Face of Broadband Onslaught

0

Dial-up Internet service provider United Online Inc., faced with rising competition from broadband services, is trying to woo customers and advertisers with video games.


Woodland Hills-based United Online just signed a deal with WorldWinner Inc., a Newton, Mass.-based online “skilled game” company, to offer more than 20 online games to its subscribers. The games include nine-ball pool, solitaire and the arcade game SwapIt! Members play against each other in an online gaming community, rather than just playing against their own computer. The competitions offer cash and prizes to high scorers.


United Online is using content to battle against cheap broadband offerings, which are more appealing to many users than a slower dial-up connection. Its Internet services, Juno and NetZero, had a combined 6.4 million subscribers as of June 30, an increase of 2,000 subscribers from a year earlier.


It already owns the Classmates.com social networking site, which allows United Online to claim 31 million unique visitors to all of its sites combined.


NetZero has tried sweepstakes tactics, launching an “Instant On! Instant Win!” contest offering $3,000 giveaways during August and September. It launched its third-generation HiSpeed dial-up service in June. The company reported second-quarter net income of $10.7 million, compared with $12.3 million for the like period a year earlier.



European Fix


Jamdat Mobile Inc. is depending on overseas sales to salve some of its wounds.


The L.A.-based mobile entertainment company announced plans to launch its most popular phone game, Tetris, in Europe. The announcement followed the stock’s loss of 25 percent of its value after Jamdat dampened expectations for its third quarter results.


Though the company reported a 128 percent jump in second-quarter revenues, to $19.3 million, it disappointed investors by forecasting third-quarter earnings per share of 13 cents to 15 cents, instead of analysts’ estimates of 21 cents.


The stock fell to $21.95 a share from $30. Web sites like the Motley Fool and TheStreet.com declared that the mobile entertainment space was too crowded and competitive, but that doesn’t stop eager companies and venture capitalists from diving in.



Amping Up


There still isn’t enough wireless for some people.


Soon-to-be launched mobile virtual network Amp’d Mobile is gearing up to serve the 18-to-35 market with its own lifestyle offering: handsets, music, blogging, dating and action sports. The idea is to offer young, on-the-go users a menu of cool content choices, all in one place, rather than trying to find games or access personal sites like MySpace.com from their phones.


The venture has attracted $67 million in funding from Universal Music Group, Highland Capital Partners, Redpoint Ventures and Columbia Capital. Amp’d already has established partnerships with Verizon Wireless to provide the backbone, Kyocera Wireless and Motorola Inc. to develop handsets, and Qualcomm Inc. for its content downloading technology. It’s Universal Music’s first venture capital endeavor.


Amp’d is run by Australian Bruce Adderton, the 38-year-old founder of youth wireless brand Boost Mobile, launched in Australia in 2000. Though its mobile network isn’t launching until late November, Amp’d already has a roster of action-sports athletes that it sponsors, including surfers, skateboarders, snowboarders and motor-cross riders.



*Staff Reporter Hilary Potkewitz can be reached by e-mail at

[email protected]

or by phone at (323) 549-5225, ext. 226.

No posts to display