Netscape Begins Unlimited Distribution of Browsers

ENT, Feb 18, 1998 by Thomas Sullivan

Shortly after reporting substantial financial losses and employee layoffs, Netscape Communications Corp. has done exactly what industry analysts predicted. The company is now giving away its browsers, Communicator and Navigator. Netscape also plans to post the source code for future versions of Communicator on the Web.

Offering the browser for free is part of Netscape's "Unlimited Distribution" marketing plan to keep up with Microsoft Corp.'s free browser, Internet Explorer (IE). Unlimited Distribution will enable OEMs, ISPs, telecommunications companies and Web content providers to download and redistribute both Communicator and Navigator free of charge. In addition to simply downloading and redistributing the browsers, Netscape is offering to qualified partners the option of redistributing a customized version of the browser. Netscape will provide the customization tools, which will enable partners to add their own logos, their own home pages, bookmarks and other features to the product. "Now that we have taken the step of making our client software free, our goal is to add millions of new users to our current client installed base," says Mike Homer, Netscape's executive vice president of worldwide sales and marketing. "The Unlimited Distribution program is aimed at doing just that."

Along with making the browsers free, Netscape plans to attract customers by adding new Premium Services to NetCenter, Netscape's site of free information and services for Navigator and Communicator users who register their software. With the enhancements, users will have access to several new fee-based features. Business Journal provides personalized information organized by industry, company and topic. In the Marketplace, members can electronically purchase merchandise such as computer hardware and software, travel arrangements, office supplies, books, music and business productivity tools. The Virtual Office enables the purchasing of hosted intranet services, such as e-mail and Web pages. VeriSign Digital IDs enable members to electronically purchase the necessary VeriSign security software to send and receive encrypted e-mail and online documents, such as transactions that include credit card numbers.

To further increase the distribution and usefulness of Communicator, Netscape plans to make the source code for its next-generation browser available for free licensing on the Internet. Posting will begin with the developer release of Communicator 5.0, which is expected to be available by the close of Q1 1998. This strategy is designed to accelerate development and free distribution of future versions of Communicator. "The time is right for us to take the bold action of making our client free, and we are going even further by committing to post the source code for free for Communicator 5.0," said Jim Barksdale, Netscape's president and chief executive officer. "By giving away the source code for future versions, we can ignite the creative energies of the entire Net community and fuel unprecedented levels of innovation in the browser market. Our customers can benefit from world-class technology advancements; the development community gains access to a whole new market opportunity; and Netscape's core businesses benefit from the proliferation of [Communicator]."

Netscape will offer a license that allows for source code modification and redistribution and provides free availability of source code versions, building on the GNU Public License. Netscape intends to create a Web site service where all interested parties can download the source code, post the enhancements developers create, participate in newsgroup discussions, and share Communicator-related information.