AT&T WorldNet launches video e-mail trial

AT&T WorldNet Service announced today a free trial of an e-mail feature that enables anyone with an e-mail account to create, send and receive compressed video and audio e-mail messages.

In a non-exclusive deal with multimedia content provider Talkway Communications, video files are recorded, compressed and uploaded to Talkway’s servers. As a result, problems associated with bulky video and audio files clogging hard-drives are eliminated, the companies said.

A key aspect to the deal is the pairing of a top-tier ISP with Talkway and its proprietary compression technology, said Rob Lancaster, an analyst at The Yankee Group. Though the technology would not lure customers from other ISPs, the video capability would draw attention and boost AT&T WorldNet’s revenues.

“It’s more of a customer attention tool than a customer acquisition tool,” Lancaster said. “They’re looking at ways of bringing in new money from an ISP perspective above and beyond the monthly subscription, and this one way to do it.”

Lancaster estimates AT&T WorldNet is approaching 1.9 million users. Though a company spokeswoman would not confirm that number, she said all subscribers are dial-up, making them prime candidates for the compressed streaming function.

AT&T WorldNet said its subscribers would receive 60 free minutes during the trial, while subscribers using alternative ISPs would receive 5 free minutes. Minutes are charged against the message originators’ account for both recording and viewing.

For instance, a one-minute message that is recorded, sent and viewed by three people would account for four minutes. Subsequent multiple viewings and forwarded messages also go against the originating account.

One problem that theoretically could emerge with this service is that purchased minutes could plummet and users might be powerless to stop it. As an example, should three friends forward a message to three friends, who in turn do the same, and so on, the proliferation could effectively wipe out minute totals very quickly.

However, an AT&T WorldNet spokeswoman said users would receive an alert when 75% of minute totals expire, and users would incur no charges for minutes beyond the allotted amount.

“Once the minutes are used, they’re used,” she said. “People are not going to have a problem where they’ll be assessed a charge once their minutes are gone.”

The free trial period runs through July 2001, and an AT&T WorldNet spokeswoman said further rollout and pricing structures would be determined at a later date.