DEVELOPED NEW ONLINE PROPERTIES (1996-1999)
CNET went public in 1996. Later in the year the company added more Web sites and scaled back plans to operate a 24-hour cable channel, deciding instead to stick with limited cable TV programming and to focus on the Internet. CNET's newly launched Web sites included News.com, a source of technology news; Download.com, a library of software demo titles; and BuyDirect.com, a site that allowed registering, purchasing, and downloading software. TV programming included three additional shows: "TV.com ," which featured presidential son Ron Reagan as a correspondent; "The Web," in which young hosts discussed cool Web sites; and "The New Edge," which looked at how technology was affecting our daily lives.
In 1997 CNET launched Snap! Online, a combined online service, directory, and tutorial. Challenging America Online, which then had 12 million subscribers, Snap! included a comprehensive CDROM tutorial for first-time Internet users. The free service also organized Internet content into channels for news, sports, entertainment, and other topics. In 1998 Snap! attracted a $5.9 million investment from NBC, which had an option to acquire a 60-percent interest in the Web portal for an additional $38 million.
In mid-1998 CNET launched a comparative shopping site for computer and technology products called Shopper.com. The site maintained a database of 100,000 products and 1 million prices. It had 62 participating computer retailers who listed their products on Shopper.com and then paid a fee based on a "pay-per-click" advertising model.
For 1998 CNET's revenue increased by 69 percent over 1997, from $33.6 million to $56.4 million. Net income for 1998 was $2.6 million (later reclassified to $3 million), compared to a net loss of $24.7 million in 1997. The company's Web sites were generating 8.2 million page views a day at the end of the year, and analysts forecast that CNET's multiple revenue streams would enable it to sustain its profitability for the next several years.
CNET continued to develop its e-commerce strategy in 1999 with the acquisition of NetVentures Inc. and its ShopBuilder (www.shopbuilder.com) online store creation system for $12 million. It planned to help resellers of unbranded computer systems, or "white boxes," build their own online stores and benefit from CNET's marketing clout. In August 1999 CNET began a store-hosting service for small-to-mid-sized merchants at www.store.com.
In early 1999 CNET began providing online computer buyer guides to America Online. Around this time CNET reorganized its Web sites into an efficient e-commerce platform. Shopper.com, News.com, Builder.com, and Computers.com were reconfigured into 10 content areas. The company's main page, www.cnet.com, focused on searching and included archived articles, editors' picks, the Snap portal, searches from Inktomi, and links to retailers. In May 1999 CNET strengthened its search engine capabilities by acquiring Sumo Inc., an Internet Service directory, for $29 million in stock. In a separate deal with RealNetworks, Snap.com would be used as a search tool to locate video and audio content online by users of RealPlayer G2 and on all RealNetwork sites. Later in 1999 CNET acquired Internet search firm SavvyS-earch Ltd. for $22 million.
CNET stepped up its branding efforts in 1999 as well. The company started out the year with an advertising budget for a national branding campaign estimated at $40-$45 million. Then, putting growth before profits, CEO Halsey Minor announced in mid-1999 he would spend $100 million on advertising to build CNET's brand and make it synonymous with technology. The new national branding campaign featured the tagline: "CNET: The source for computers and technology."
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