Microsoft Makes Way for MSN 8

Microsoft will release the anticipated upgrade to its MSN Internet access software on October 24 and charge some users a monthly fee of $9.95 for it, the company said Tuesday.

Bill Gates, Microsoft's chairman and chief software architect, will debut MSN 8 at a launch event to take place in New York's Central Park.

The company is planning a marketing campaign in conjunction with the launch that it says will be its biggest ever for MSN, topping the $150 million it spent to market MSN 7, according to Parul Shah, an MSN product manager.

Paying the Price

With the upgrade, Microsoft for the first time will charge some customers to use the software. Those who purchase Internet access through a service provider other than Microsoft will have to pay $9.95 per month or $79.95 per year for MSN 8.

The monthly fee includes access to services available through the Internet access software, such as photo editing and photo sharing, personal finance services through MSN Money, and a new e-mail service that blends features from Hotmail and the company's Outlook Express desktop product.

MSN 8 also promises to have more advanced parental control features compared to previous versions. For example, parents will be able to limit who their kids exchange e-mail messages with or who they chat with over MSN Messenger, Shah says.

MSN 8 will be free for those who subscribe to Microsoft's MSN Internet service, which is available for dial-up and broadband users. MSN Internet service costs $21.95 for dial-up and between $39.95 and $49.95 for broadband, the company says.

The new pricing plan brings the company closer to AOL Time Warner, which charges users for premium services available through America Online. Also similar to AOL, Microsoft will distribute MSN 8 on a free disc, charging users only when they sign up for service.