Hunting in Hollywood

xAlongside Igreat Company's dual product launches on October 14, a comprehensive marketing plan involving network, television, and newspaper platforms was also deployed.

On the following Wednesday, Igreat officially released a set of data.

The number of World Wide Web users in the USA had officially surpassed the 10 million mark.

Network users are usually counted by household, so 10 million web access users represent far more than just 10 million people. To be precise, this means 10 million web accounts.

According to Igreat's portal survey data, the average number of individuals per web account is currently 1.6. This means that by October 1991, the actual number of web users in the USA had reached 16 million, approaching 8% of the total population.

The average number of people per household in the USA is, of course, not 1.6. This figure is a composite statistic.

In the early 90s, personal computers were still considered high-end electronic products. Even in a household of five, perhaps only one or two people might use the computer. Furthermore, many single white-collar users also had internet access.

This also means that the existing 10 million web access accounts have significant untapped user potential.

16 million web users already rival the average user base of the four major TV networks in the USA, and they are also a high-end social group with strong consumption power.

Thus, just two days, or 32 hours, after the launch of Ypay and Ystore, Igreat Company announced that the transaction volume of the Ypay online payment tool had surpassed $10 million.

On the fifth day, Igreat portal released another press statement, revealing that the number of activated Ypay users had reached 1 million.

A week after the launch of the two new products, Igreat Company also announced a series of other encouraging data.

The transaction volume of Igreat's application store, Ystore, reached $28.39 million in seven days.

The number of activated users for Igreat's online payment tool, Ypay, finally reached 1.53 million in seven days.

Due to discounts ranging from 2% to 5% based on different payment amounts, coupled with the convenience of online payments, the amount of AOL network fees paid through Ypay reached $36.91 million in seven days, which is already more than 20% of AOL's entire revenue for September.

In seven days, over 18,000 users applied for credit cards directly linked to Ypay accounts through Citibank and Bank of America.

Compaq's 'Internet PC' sales reached 28,371 units in seven days.

This computer model came in two configurations, priced at $3,299 and $3,799. With an average price of around $3,500, Compaq's sales of this computer model alone nearly hit $100 million in just one week.

Since this is an emerging industry, there are not many comparable data points.

Therefore, the seven-day sales data of Compaq's 'Internet PC' drew significant industry attention.

According to industry research agencies, from October 14 to October 20, the global shipment of personal computers was about 450,000 units.

However, Compaq's single computer model alone sold over 28,000 units, representing about 6% of the market share.

Compaq subsequently announced that the shipment of its entire PC series was 69,000 units, capturing a 15.5% market share.

Just a month ago, Compaq's latest market share statistics barely reached 13.2%.

This means that merely through this collaboration with Igreat Company, Compaq's market share increased by 2.3 percentage points.

Since the inception of Apple in the 1970s, competition in the personal computer industry has been fierce.

Therefore, a 2.3 percentage point increase in market share in just one week is a small miracle.

If other PC manufacturers had anticipated this marketing campaign could boost their market share by 2.3 percentage points, they would not have missed this opportunity.

In fact, at this stage, most brands, including IBM, Commodore, Apple, etc., were contacted by Igreat Company.

However, due to many unresolved details, these relatively established manufacturers ultimately gave up this opportunity. Only Compaq reached a cooperation agreement with Igreat.

For the single model computer sales nearing $100 million in seven days, the deposit generated through Ypay was only $5.56 million, and Compaq covered this discount cost.

Igreat received a $15 million advertising contract.

The contract duration was from early October until the end of the year, spanning a full quarter.

Given Compaq's computer sales data after the launch of Ypay and Ystore, the $15 million customized advertising contract far exceeded Compaq's expectations in returns.

Many tech brands had been gradually advertising on the Igreat portal over the past year, but the amounts were never too large. The key reason why many did not reach an agreement this time was Igreat's high $15 million quote.

Although Igreat invested most of this revenue into its brand marketing, many manufacturers initially believed that since they were already bearing the discount cost, Igreat gaining the promotion of Ypay was a win-win. Therefore, Igreat's additional demand for a large advertising fee seemed unreasonable.

Now, no manufacturer would think this way.

Igreat's proposal wasn't just about selling Compaq's 'Internet PC' through Ypay; it included a comprehensive, full-platform advertising plan for a quarter.

With the success of this collaboration between Igreat and Compaq, other tech brands began contacting Igreat. Even Gates called Simon personally to discuss the online marketing of the upcoming Windows 3.1 system next year.

1991 was nearing its end.

For the new technology field, Igreat's rapid growth over the past year was evident.

Leaving aside other aspects, the 10 million web access users alone, each paying $10 for the IE browser installation, brought Igreat $100 million in revenue.

Due to many ISPs promoting free trial activities, even if users didn't convert, ISPs still had to pay for IE browser installation.

By mid-October, this software had actually brought Igreat $137 million in revenue.

Carol Bartz, overseeing the official integration of Igreat's network services into YWS, had accumulated $86 million in revenue for Igreat over the first three quarters through server rentals, tool software, and website solution sales. This part of the business is expected to surpass $110 million in annual revenue.

Including Compaq's $15 million large advertising order, Igreat portal's advertising revenue for 1991 totaled $61 million.

This figure may seem less than half of what the IE browser brought in, but with the success of this marketing collaboration with Compaq, Igreat's advertising business undoubtedly has greater growth potential.

Keep in mind, the sale of the IE browser is essentially a one-time deal.

According to the agreement, Igreat guarantees three years of free upgrades for users who install the IE browser.

Simon's plan is to push for the complete free availability of the IE browser in a few years.

This is mainly due to antitrust considerations.

Igreat portal is the default homepage of Igreat's IE browser, and currently, Igreat doesn't even allow users to change the homepage.

In the short term, as a guide site for internet surfing, no one finds this problematic.

But over time, people will certainly start to question it.

"I've paid for this software, so I should have the freedom to choose my homepage."

Even if users don't realize this, other internet companies will understand how monopolistic Igreat's advantage is and will certainly raise objections.

If the IE browser is free, the pressure on Igreat will be much less.

"I provide you with free software, so I should enjoy the default homepage convenience."

At most, Igreat might make some concessions in the future to allow users to change the IE browser's homepage.

However, the default homepage of the IE browser will always be the Igreat portal, and in the future, it will be Igreat's search engine.

Any industry that cannot generate sustainable commercial benefits cannot grow.

Igreat has already proven the viability of its YWS products and portal advertising business. The success of Ypay and Ystore further demonstrates the vast commercial potential of the internet industry. Various capital and traditional business giants are increasing their investment in the internet sector.

However, some issues are inevitable.

The core patent technologies of the most widely used World Wide Web are mainly held by Igreat.

Although Igreat maintains an open licensing attitude on the surface, anyone with sense knows that Igreat will definitely use its patent barriers to limit the development of competitors.

Simon wouldn't deny it. Igreat will certainly do so.

Not doing so would be abnormal.

Currently, Igreat has the upper hand in server rentals, portal websites, online payments, and email services. Unless Igreat actively opens up core patent technology licenses, other companies cannot enter these fields.

Igreat has covered most of the successful internet business models Simon remembers.

To completely bypass Igreat's patent barriers and compete with it, other companies would have to push for alternative basic network technologies.

There are certainly other types of network protocols at this time.

However, after looking around, other companies have to admit that existing network technologies cannot compete with the already mature World Wide Web.

Since more than two years ago, Simon Westeros has been tirelessly investing in the development of World Wide Web technology, a time advantage that other companies cannot catch up with. Moreover, the HTTP and HTML protocols or languages are undoubtedly more suited to the internet's development trends for those who have used the web platform.

Furthermore, Igreat has already introduced popular internet image formats, sound formats, and JavaScript scripting languages.

Not only these basic technologies, but Igreat has also completed the development of related application software, like the widely used IE browser, and other relatively professional software for web design and site management, as well as comprehensive web solutions that other manufacturers cannot catch up

 with in the short term.

Even if they start catching up now, the World Wide Web technology won't stop advancing.

Moreover, if a competitor threatens its position, Igreat will likely establish more technical barriers in their catch-up process.

If catching up is impossible, to enter the internet industry, companies must seek Igreat's authorization.

Though Igreat seems very open, if one day it feels threatened by competitors, it might forcibly stop licensing.

Such incidents are not uncommon in the tech industry.

Even if the affected company wins the lawsuit through a series of litigations and regains revenue, a multi-year lawsuit can still severely hurt a company.

Simon had realized this issue at the beginning of this year.

With the success of Ypay and Ystore, the industry's focus on the emerging internet sector has increased, making certain issues more pressing.

The internet must be an open platform to attract enough businesses and users.

Igreat has covered most of the successful internet business models Simon remembers, but this industry still has vast potential. Human creativity is boundless.

However, the current concern is whether Igreat will use its patents and technological advantages to suppress competitors.

Suppression is certain.

But for the rapid development of the internet industry, Simon understands that doing so through patent technology is unwise.

To eliminate many concerns within the industry, after repeated discussions with Igreat's executives, Simon finally decided to completely open up Igreat's core World Wide Web patents, including HTTP and HTML technologies, as well as related image, sound, and JavaScript script technologies.

The proposed plan is to place these patents in a non-profit World Wide Web Alliance Foundation, allowing internet companies to use these technologies without seeking Igreat's authorization.

News travels fast.

Shortly after the decision was made, the San Francisco Chronicle reported it, catching Igreat's management off guard.

After firing a mid-level Igreat manager who leaked the news, Simon and the three Igreat leaders, along with other tech companies in the Westeros system, became the focus of industry inquiries.

Although the decision was made, the specific list of patents to be opened still needed careful consideration.

For example, Igreat's email-related technology won't be opened in the short term, and Igreat will certainly restrict other manufacturers from developing IE-like browsers using web technology.

However, regardless, this move is a significant gesture for the entire industry.

___________________

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