A-Z of the digital world
Monday 06 May 1996
The licence does ask you to pay if you continue to use it, but this is probably one of the most ignored requests on the Net. As a result, from its launch in April 1994 Netscape rapidly built up an estimated 75 per cent share of the browser market. That's the nice thing about the Internet for companies selling software: the cost of distribution is almost zero.
What's the advantage of a big market share, though, if nobody pays you for your product? The trick Netscape used is that Navigator is not its only product. It also sells "server" programs that run the Web sites that people visit.
Now, if you're a business setting up a Web site, would you go with the Netscape server program, knowing that three out of four people visiting your site are likely to be using its complement, or would you go for something else? And businesses, of course, pay for things.
The result is that Netscape is the biggest success story ever on the Internet. Sixteen months after it was set up, it was floated on Wall Street, where in its first day it was valued at $2.8bn - making one co-founder, Marc Andreessen, worth $58m at once, and his co-founder Jim Clark (also Netscape's chairman) worth a cool $563m.
At that stage Netscape hadn't ever made a profit, though last month it did, for the first time: $4.7m on sales of $55m.
The question now is whether it can keep that going.
Life & Style blogs
Nine out of ten male prostate cancer sufferers could be treated after 'game-changing' study
Meditation is touted as a cure for mental instability but can it actually be bad for you?
Anorexic actress Rachael Farrokh told by hospitals she is too skinny to treat
New Zealand 'the best country to work as a prostitute', says sex worker advocacy group
What do the emoji on Snapchat mean?
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
Labour leadership: Battle lines are drawn as members battle over party's ideology at first hustings of the contest
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
- 1 JK Rowling horrified by Harry Potter actor Matthew Lewis's raunchy photoshoot
- 2 As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
- 3 Saudi Arabia 'seeking to head United Nations Human Rights Council'
- 4 Georgia Army veteran arrested for breaking window to save dog has charges dropped
- 5 New Zealand 'the best country to work as a prostitute', says sex worker advocacy group
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