Interview with Exec From MyPoints’ Parent Company

June 12, 2006 · 0 comments

There was an interesting article on today in which the CMO of United Online, MyPoints’ new parent company, discussed the company’s expansion strategy. In it, Matt Wisk says that although NetZero and Juno (other companies United Online owns) bring in around 80% of the company’s total revenue, and although they realize that dial-up access is on its way out, they have no intent to offer broadband. They want to take whatever money they can make from NetZero and Juno, as long as they last, and use it to diversify into other online opportunities, like MyPoints, and their latest offering,
That doesn’t sound like much of a long-range plan to me. Cut your losses on your core businesses, raking in the profits as long as they last, while taking the cash and spending it on various other online businesses? What happens when the NetZero/Juno gravy train runs out? Is there some sort of unified master strategy, some core focus, to their business, or is it just “buy stuff and see if we can do something with it?” And — my concern as a long-time MyPoints member — in a few years, will MyPoints be the cash cow they’re just stringing along, milking for income they funnel into buying other businesses?
A related article about how United Online’s dial-up competitor, Earthlink, is embracing — and pursuing — broadband, is here.

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