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MSN losses force Microsoft to consider charges

Microsoft will start charging visitors to its MSN portal if plans to recoup investment on the loss-making site go ahead.

By Sonya Rabbitte

Published: 26 February 2001 12:57 GMT

The company has admitted that online advertising and click-throughs are not generating the levels of revenue that had been previously anticipated.

The fee-based plan, due for rollout this year, would offer extra services, such as higher quality spam filtering, to MSN customers for an annual fee of £60. However, core MSN services including Hotmail will remain free.

Microsoft invested £600,000 on a site overhaul last October in an attempt to maintain it's competitive edge against AOL and Yahoo! But despite 200 million visitors every month, analysts say the site is still making a loss.

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