In Shift, Qualcomm Offers Free Version of Eudora E-Mail
In a move bound to make waves with Internet advertisers and the 20 million users of Eudora electronic-mail software, Qualcomm Inc. today will begin offering a free, advertiser-supported version of its $50 e-mail package.
The shift is a tacit acknowledgment that computer users are largely unwilling to pay for e-mail programs amid a glut of free offerings. But it also signals a renewed commitment from Qualcomm to give Eudora a larger role at the San Diego-based wireless communications firm, especially now that mobile phones seem destined to handle e-mail, Internet browsing and other computer functions.
On Wednesday, the coming computer-phone convergence was underscored by the announcement of a new strategic partnership between Microsoft and mobile-phone maker Ericsson. The two firms will develop ways to access e-mail, personal files and other information over wireless gadgets, including phones.
“E-mail over portable devices is going to be huge,” said Kent Allen, an analyst at Aberdeen Group who is familiar with Qualcomm’s strategy. “Eudora is a big name in the e-mail market, and it’s kind of surprising that it’s taken this long for Qualcomm to get it together.”
Indeed, although Eudora remains one of the most widely used e-mail programs, it has been losing money and market share in recent years as Netscape and Microsoft upgraded their e-mail offerings and began including them for free with their Internet browser programs.
At the end of 1998, Eudora was the primary e-mail program for about 22% of e-mail users worldwide, ranking it second in market share behind Netscape Messenger, according to a survey by Georgia Tech. Ranked by revenue, Lotus cc:Mail is the market leader, with $60 million in yearly sales, and Eudora is second with $40 million, according to 1998 figures from Dataquest.
About 80% of Eudora’s estimated 20 million customers use the freeware version, and about 4.5 million users pay for the upgraded version in stores or through site licenses, according to the company.
But the advent of free ad-supported e-mail services, such as Hotmail and Yahoo Mail, have also chipped away at Eudora’s user base. Qualcomm has decided to fight back, hoping to solidify its hold on millions of customers and make money too.
Under Qualcomm’s new strategy, users will be able to download any version of Eudora for free from the company’s Web site--the streamlined Eudora Light (already a freeware program) or the full-featured version known as Eudora Pro (retail price: $50).
Yes, there is a catch, and it’s the presence of advertising. Qualcomm’s new “sponsored” Eudora--Eudora Pro--will include a single square ad in the lower left corner of the Eudora screen. No animation, no sound,--just the equivalent of a newspaper ad that will change periodically.
The plan is a departure from most Web site advertising, which tends to irritate users with intrusive features.
Under the Web-site model, advertisers typically have a short time to attract the user’s attention. With Eudora, the ads will sit in the corner when the program is in use--potentially offering advertisers sustained exposure to the user, especially because the ad cannot be deactivated.
