Showing posts with label Volkskrant. Show all posts
Showing posts with label Volkskrant. Show all posts

Tuesday, May 01, 2018

BPN 1739: 25 years of consumer internet in the Netherlands

"On 1 May 1993, something remarkable happened. On that day, XS4ALL opened its server to the consumer. The management's objective was to acquire 500 customers in half a year. But at 7 o'clock in the evening, the 500th customer had already signed up. This success can largely be explained by the publication of the article "A continent that belongs to no one yet" by Francisco van Jole "(@2525) in the Volkskrant of the same day".

Besides (old) illustrations on the site of XS4ALL, there is also an old sound found. It is about the sound the handshake of a modem to the server of the IP. After the ringtone of DDS now also one of XS4ALL plus a happy birthday tune. 

 Text fragment: Toen digitale media nog nieuw waren - Pre-internet in de polder (1967-1997) - bit.ly/2e1T7ON. 

The following article is a translation of an article published by InCT.nl. 

25 years of the internet for Dutch consumers

On 1 May I congratulated my grandsons. They looked up from their phone and asked what. Of course, the congratulations were not for Labour Day, because they are still at school. I congratulated them on 25 years of the internet for Dutch consumers. They shrugged their shoulders and continued with their smartphones. For me, it is still a matter of guessing whether they know what consumers are.
They know the term internet, but why celebrate an anniversary of something you use every day? Yes, they were still unborn when Dutch consumers were introduced to the phenomenon of the Internet (certainly, with a capital letter, because it was a new phenomenon at the time).


Illustration 1: The Volkskrant article of 1 May 1993

On May 1, 1993, I opened the Volkskrant and found an article with the headline 'A continent that belongs to no one yet' by Francisco van Jole. It was about the phenomenon of the Internet. According to language researcher Perry Feenstra, that word was only used 22 times in the national newspapers in that year.
 

Open to consumers
On the same day, the Internet organisation XS4ALL opened its service to consumers. It was anticipated that it would take between six months and a year for 500 subscribers to come forward. But the target was achieved that same evening. The article in de Volkskrant will undoubtedly have contributed to this. This made XS4ALL the first real internet organization to serve consumers as well as business customers.

The years prior to the launch of XS4ALL were confusing. In the Netherlands there was an online multi-flow country: there were ASCII, video and electronic messaging services and Bulletin Board Systems (BBS). In academia, something as vague as the Internet played a role and, since 1990, the Web. New companies were formed around this new movement, which mainly focused on business customers or associations such as the Hobby Computer Club. In 1992, 292 companies were customers of an Internet service provider. NLnet gave consumers - mostly former students - access, but did not believe that there was a consumer market.


Illustration 2: A map of the Netherlands with internet services, academic and business (1992/1993)

XS4ALL did not do the same thing. There the founders believed in a consumer market. The founders knew each other from the magazine Hac-Tic, which dealt with hacking, free calls, operating systems and services such as Bulletin Board Systems (BBS). The founders of XS4ALL also made use of NEABBS (Dutch First General Bulletin Board System), a BBS based in Amsterdam.

In 1993, XS4ALL was founded by Rop Gonggrijp, Paul Jongsma, Felipe Rodriquez and Cor Bosman. In a short space of time, they were able to develop their internet service into a company. In early 1994, for example, XS4ALL worked with De Digitale Stad (The Digital City). In that year the company also worked together with VPRO, which became the first broadcaster to work with the internet; in view of their visual material, they needed fast telephone lines and found them at the telecom service of the Dutch Railways. In 1994, the service was incorporated into a foundation and, since 1996, into a private limited company.


Illustration 3: Advertising of XS4ALL

XS4ALL was also the first to face lawsuits. For example, in 1995, the Church of Scientology filed a lawsuit against the publisher Karin Spaink Karin, the Internet service XS4ALL, and a number of other service providers. Spaink is said to have published on the internet texts of Scientology on which the Church's copyright would rest; according to Spaink, they were merely extracts. XS4ALL successfully argued that it only passed on the material, not published it.


To KPN
 

The great surprise was when the Dutch telecom operator KPN took over XS4ALL twenty years ago. It soon became clear that XS4ALL would remain an independent company and would not be integrated with Planet Internet, which had just survived an integration battle at the beginning of 1997 with the videotex service Videotex Netherlands, the Internet service WorldAccess and the messaging service Memocom. However, after the sale to KPN, activism remained a feature of XS4ALL. For example, XS4ALL has conducted a trial with Ziggo against the collecting society BREIN for blocking access to the Pirate Bay download site.

Meanwhile, XS4ALL is one of the better but more expensive internet providers in the Netherlands and the service is used by KPN as a vehicle to sell multiple service packages with fibre optic, landline, television and mobile.


Illustrations are part of the Collection Jak Boumans.



Friday, April 11, 2008

BPN 1065 The first post-Apax annual report of PCM

Last year was an annum horribilis for the Dutch newspaper and book conglomerate PCM. The private equity company Apax had left PCM in 2007, taking 140 million euro in profits along in its exit after four years and leaving the conglomerate with a negative own capital. This year the figures of PCM look rosier, but the future of the conglomerate is still uncertain.

The situation has changed this year by using a set of tricks. By converting the deferred loans into shares the own capital of the conglomerate is now 271 million euro and positive again. And the debt has been halved to 316 million euro; a sum which has to decrease in the coming year. The turn-over slightly rose last year to 644 million euro and the company result grew almost twenty percent to 45 million euro.

The main share of the revenues still comes from newspaper sales and subscriptions as well as advertisements. Deducting the turn-over of the book division (96 million euro) and of the educational division (64,5 million euro), the turn-over from newspapers and newspaper related activities is 483,5 million euro. Volkskrant and NRC Handelsblad are the money makers, while AD, a joint venture with Wegener, is positive. For the newspapers PCM is afraid of the paper prices and the price for newspaper distribution; it does not expect any re-organisation in the newspaper sector. PCM expects the free newspaper Dag, a joint venture of KPN and PCM, to cost another 10 million euro in the coming year, before it shows black figures. Dag recently underwent a restyling and gets now editorial input from De Volkskrant; it is no longer a red rag.

PCM is taking some accountancy measures. After the Apax exit, the company was forced to an investigation by the Enterprise Chamber of the Amsterdam Court. Now PCM has announced that it will report its annual figures according to the international accountancy method IFRS. It will be done for transparency and for comparison with competitors.

PCM has no plans for mergers or acquisitions. Last year the merger with NDC/VBK was called off. The coming year will be used to consolidate business. PCM does not aim at a broadening of its base any longer to decrease the dependence on newspaper. For the time being it will remain a newspaper and book conglomerate. As mentioned in yesterday’s posting the educational division ThiemeMeulenhoff will sold off and the money received will be used to relieve the debt.

Blog Posting Number: 1065

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Monday, January 14, 2008

Dutch newspaper conglomerate PCM investigated

At the request of the trade unions, amongst other the Journalists’ Trade Union (NVJ), an investigation about mismanagement will be started against the Dutch newspaper conglomerate PCM, owner of NRC Handelsblad, Volkskrant, Trouw, NRC Next and DAG as well as house-to-house broadsheets, . In 2004 The Dutch newspaper conglomerate invited the British private equity company Apax to move ahead faster, but the investment company left with 140 million euro in profits in 2007. The judge ordering the investigation did not mince his words criticising Apax.

The newspaper group PCM was owned by separate foundations, of which SDM was the moist influential one. These shareholders invited Apax to reorganise the company and move it to the front. First thing Apax did was reorganising the total financial structure of PCM Publishers. First action was to found a holding company, PCM Holding, capitalised at 1 million euro. Apax transferred 475.000 euro, while the other stakeholders (foundations) paid also 475.000 euro. Management contributed 50.000 euro. As the voting rights were lodged with Apax, the company dominated the board with 52,5 per cent of the votes.

PCM Holding bought PCM Publishers with 300 million euro foreign capital from banks. Also Apax puts in 139 million euro and the foundations offer 200 million euro. All the loans have an interest rate of 12 per cent. In 2006 Apax refinances PCM and asks PCM to return 130 million euro. Apax is then major stakeholder, dominating the votes for 40 million euro, while PCM has debt of 170 euro due to the high interest on the 139 million euro. In 2007 Apax is bought out by the foundations for a profit of 140 million euro. During the Apax management PCM lost more than 240 million euro.

Now the corporate chamber of the court has appointed to investigators. The investigation will cost 150.000 euro and has to be paid by PCM. Depending on the conclusions of the investigators the judge can concluded that PCM has been mismanaged under the Apax regime.

Such a conclusion would be disgrace for Apax, especially as private equity companies have already a bad name as locusts in The Netherlands. Theoretically the conclusion could lead to dismissal of the governors and return of premiums of the governors and managers. Yet these measures would have hardly any effect on PCM. Most of the governors and managers involved have been dismissed and some of the managers have not accepted their premium. Mr Groenewegen, who started as cfo in 2005, is the only manager left from this period, while Strengers is the only governor left from that period.

Yet the judicial conclusion of bad management would mean justice to the PCM employees, who could not prevent that their company was financially drained during an economic upturn.

Blog Posting Number: 977

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Sunday, May 06, 2007

iRex on summer campaign

iRex Technologies, the manufacturer of the iLiad digital paper reader is on campaign in The Netherlands. I recently mentioned that the public library of my home town Almere is renting out an iLiad to its member, now the Dutch association of public libraries is organising a meeting on May 21. Announcements for that meeting are:
- The newspapers de Volkskrant and NRC are working on putting the dailies online witjh ilLiad (already announced);
- The Mobi pocket catalogue is available for the iLiad with 40.000 titles in English, German, French and Spanish; just in time for the holidays! (see iRex site)
- The Dutch association of public libraries will put together a holiday case of e-books;
- Seven public libraries with subsidiaries on the beach will demonstrate the iLiad to the sun seekers.

Meeting:
Organisation: KIVA/iRex and ProBiblio
Location: ProBiblio, Hoofddorp (NL)
Date: 21 May2007
Time: 9.30h till 12.30h
For more info: evdmeer

(It is a good idea to promote e-books in the summer season. People read many books during the holidays and especially on the beach. But it reminds me of a marketing campaign of an encyclopedia company I worked for in the late seventies. The sales manager grounded all sales people (advisors you would call them these days) and told them to join the summer caravan organised by a broadcast station, which would broadcast from the beach. The sales people were supposed to sell the 25 volumes encyclopedia on the beach. Whenever they had a victim, they would invite him/her to the trailer and start the sales talk. There was the victim in swimming suit and the sales lad in summer outfit. In the end, when the victim was convinced, he/she was asked to sign an agreement. Officially under Dutch consumer law he/she would have another 8 days to reconsider. But by that time the agreement had been lost in the tent or camper!
Come to think of it: the encyclopedia was more expensive than an iLiad. The sales people sold more encyclopedias in 1977 and 1978 due to this beach campaigns; but after 1979 the whole Dutch print encyclopedia market crashed.)


Blog Posting Number: 744

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Monday, April 23, 2007

iLiad: forthcoming research on Dutch newspapers

It has been in the air ever since the iLiad was under construction by the Philips spin-off iRex Technologies: Dutch language newspapers on e-Readers. This week the Dutch Press Fund awarded a consortium of Dutch newspapers a grant of maximally of 362.950 euro for practical research into e-Readers. Three newspapers will partake in the research: the free newspaper Spits, the financial daily Het Financieele Dagblad and the national daily de Volkskrant. The research will take two years and the results will be offered to the newspaper sector.

The practical research will not be directed towards the technology, but will focus on how e-Readers can assist the change-over from the classic, static newspaper to the digital, dynamic newspaper content.

This research objective is broad. Yet one can ask whether another research has to be started up. Internationally there is an IFRA eNews research project going on. Closer to home, Wegener and Philips have done research into the usage of e-Readers by regional newspaper readers. The use of the e-Reader was tested over against other information devices. Especially the difference in usage between internet services and e-readers was tested. Very extensive research was performed with the Belgian newspaper De Tijd. This newspaper is a Flemish financial newspaper. I reported on the results of the research project extensively in my postings. But so far there is no decision has been made public that De Tijd will continue will the service.

The research in The Netherlands will be interesting as Het Financieele Dagblad will be the Dutch language partner in it. So it will be possible to compare the results between De Tijd and Het Financieele Dagblad as language and subject are the same.

New for the Dutch/Flemish language will be the research into the free daily and the paid national newspaper. De Spits is the counterpart by de Telegraaf of the Metro. It aims at the young commuters in urban areas. For de Telegraaf the newspaper the newspaper is an ad vehicle. The national newspaper de Volkskrant direct itself towards young audience with a good education and good job; a substantial part of the audience consists of singles.

The interesting part of the research will be the comparison between professional usage, usage for paid news and usage for free news. From my experience with the introduction of new devices such as CD-ROM players and electronic books, I expect that professional usage will be the leader of the three.

Interesting will also be the content question. Will the newspaper editorial staffs just transmit the newspaper as the pdf files on internet once a day or will they provide an iLiad edition once a day, in a day parting mood (morning, midday, late afternoon editions) or continuously changing news. From the internet experience it is clear that pdf is not a favourite type of edition and that continuously changing news is much appreciated. Given the wireless facility of the iLiad e-Reader a continuously changing news feed can be transmitted.

Personally I would also include the Readius in the project. The two e-Readers could be tested over against each other. The iLiad would be a single functional information device with an A5 screen, while the Readius would be a multi-functional communication and information device with a mobile telephone and a small screen, dedicated to information.

I look forwards to participating in tests of this research project. Of course I should get my iLiad to the repair service first.

Blog Posting Number: 732

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