[THE PITCH]
for 25 June 1996. Updated every TUESDAY.
 


[netwerk.com]
 
BIG IDEA Publishers Clearinghouse meets your local
cable provider ...on the Web!
 
25 WORDS <= Allow content providers to charge for
product by pretending ITV has already
arrived. "Netwerk makes the net work!"
 
HARD SELL Self-described new media "journalists"
hope to someday be more than charity
cases of big media conglomerates out to
stake out a parcel of cyberspace in
anticipation of rising land values...
but, with too many content providers
chasing too few ad dollars, outfits like
Songline Studios are pulling up stakes
and pulling the plugs rather than
bleeding green waiting for the big cash
transfusion. While the economic principle
of increasing returns works well for
net-based software companies, original
programming on the Web has both high
fixed costs, given the requirement to pay
salaries for managerial, engineering, and
editorial staff, and high variable costs,
necessitated by the use of freelancers
for regular updates of content. Content
providers need to provide for another
revenue stream outside of the one
wistfully promised on their
heavily-discounted rate cards, but
consumers are resistant to pay and play
when both the cost and the effort to
subscribe remains high.
 
[Comic]
 
Enter Netwerk.com. Netwerk makes the net
work for both the producer and consumer
of new media products. Where ex-Microsoft
Works product managers hatch crack-baked
schemes to charge more for Slate than
what you'd pay for a real magazine
subscription, Netwerk provides dozens of
publications at one low, low cost,
conveniently billed on your monthly
Internet service provider's statement.
Through a national toll-free number,
consumers order a complete netainment
bundle - local dialup access, and a
webzine package of their choice - with
FREE installation for a three-month
committment. (Installation includes a
browser pre-loaded with the appropriate
cookies for the consumer's media
choices.) Packages available upon
introduction of the service could include
The Happy Mutant's PlayPak (HotWired,
Spiv, and Stim); The Reader's Literary
Compendium (FEED, Salon, and Slate);
Tree-Hugging for Businessmen (The New
York Times, The Wall Street Journal, and
Pathfinder); and Pornocopia (Penthouse,
Playboy, and Hustler Online).
 
OVERHEAD Like stone soup or Trip Hawkins' 3D0,
a smooth-talking pitchman could easily
create a lucrative pyramid scheme with no
product and even less money down. Hungry
content providers desperate to see any
source of income, and national ISPs, such
as Netcom or PSInet, in dire need to cut
announcable deals in order to keep their
stock price afloat, make for a ready
environment for a bold two-man strategic
acquisitions team. 1-888-NETWERK can be
obtained to provide toll-free, national
service, and aggressive direct marketing
can be performed by Midwesterners calling
during Seinfeld and reading from prepared
sales scripts.
 

courtesy of
"Team Player"