FEN, Microsoft: Let's Make a Big Deal
THE DIGITAL KIDS REPORT
Microsoft Corp. has struck a deal with the Educational Publishing Group that could send the Boston-based company's fledgling Family Education Network to the head of the class.
Specifically, the companies have agreed to co-market the FEN service, which is scheduled for launch in September. The service—a preview of which is available at www.families.com—is the corner-stone of a membership program under development by EPG, which will include a newsletter, discounts on a wide variety of products and services (including Microsoft software), and other benefits. Under the terms of the deal, EPG will develop the FEN online service using the full portfolio of Microsoft tools and technology; subscribers to FEN will receive the Education Explorer browser, which is a version of Internet Explorer gussied up for the education audience. Customers will also receive five free hours of access to the service via a deal brokered by Microsoft with AT&T's WorldNet Internet service.
While the casual observer might be surprised by the partnership, the deal delivers for both parties. For EPG, it means access to Microsoft's marketing and technology prowess, which it would have been hard pressed to match on its own. (To date, Microsoft has handed over about $500,000 in technology resources alone, according to EPG president Jon Carson.) In return, Microsoft gets the cachet of EPG's standing in the educational community; EPG is an important ally in the the Redmond giant's foray into this multi-billion dollar market.
While FEN is intended primarily for use by parents in the home, the service has a substantial school-based component. Specifically, FEN is designed to be customizable so that communities can create local FEN services that bridge the gap between home and school. (The company forged a partnership with the American Association of School Administrators to promote this aspect of the service.) Also, subscribers will be able to access national programming from Exceptional Parent, PBS, Congressional Quarterly, and much more.
Back to School
It's no secret that Microsoft is aggressively pursuing the education
market both at home and in the schools. The company is offering Windows
95—which retails for about $100—to K-to-12 schools at $19.95 per
program. It's also pouring millions into creating what it calls a
“connected learning community.” Examples include a program to wire the
Parent-Teacher Association and its local affiliates; a $3 million
partnership with the American Library Association called Libraries
Online; and a multi-million dollar initiative to wire schools, the
Global Schoolhouse, via a partnership with MCI.
These efforts are slowly but surely chipping away at long-time leader Apple Computer's share of the education market: According to Quality Education Data (Denver, CO), 39 percent of school districts in the U.S. plan to purchase Windows machines in the 1997 school year, which is up from 37 percent in 1996. Macintosh purchases will drop from 61 percent of school districts in 1996 to 55 percent this OM year. Other studies show an even greater penetration of Microsoft software. Last May, COCA Consulting (Wellesley, MA) reported that Windows-based PCs will account for 72 percent of computer purchases by K-to-12 schools in 1996.
Certainly, the deal with Microsoft pushes the FEN service into the big league even before it officially launches. There's little doubt that education players will be watching this one carefully.
