Marketing Electronic Information

Abstract

In an earlier article [1] we surveyed the convergence and integration of major players in the information industry. The trend towards vertical integration, which can be observed in the macromarket, is also evident in the operations of individual online hosts — the micromarket. In this article we look at the vending of online business data, a sector in which commercial bias is strong and where market patterns mimic those of the larger theatre. Electronic publishing (excluding real-time financial information services) is one of the few areas of the information industry relatively untouched by IBM and AT&T — the latter was originally banned for seven years from this sector at the time of divestiture (1984), a move intended to protect the production of Yellow Pages, but with wider implications. The big battalions are, however, poised for penetration, with IBM, BT, financial conglomerates and the Japanese (who have recently launched a CD-ROM business database through OSD) [2] in a position to enter the market, while AT&T in May 1986 was given the green light by the FCC (Federal Communications Commission) to provide advanced information services, such as computer communication networks without first setting up an arms-length company.