The development of "channels" for Web browsers provides many benefits to users. But they may pose a problem for smaller companies trying to achieve visibility, writes Angus Kidman.

Published in the Australian Financial Review, September 22 1997

Since the World Wide Web became a popular communications medium, companies have been told that an Internet presence is an essential component of their strategy.

However, recent changes to the technology used for accessing information may present a new challenge to businesses trying to gain a foothold on the Web.

The latest Web browsers from both Netscape and Microsoft incorporate systems generically known as "channels".

Unlike standard Web pages, which a user has to actively go and look for using a browser, channels automatically download information from the Internet on a schedule pre-defined by the user.

Once downloaded, they are stored on the user's hard drive, and can be accessed even if the machine is not connected to the Net.

Channels also allow users to specify that they only wish to receive information on particular topics and from particular sites. (Such systems are frequently referred to as "push" technology).

Netscape's channels product, known as Netcaster, was released in early August and is part of its Communicator 4.0 browser/groupware package. Rival Microsoft's Channels system is a feature of Internet Explorer 4.0, which entered final release around a month after its rival.

IE 4.0 will also be included in Windows 98, the next-generation Windows operating system Microsoft plans to release next year.

From a user perspective, channels offer a number of advantages, including faster access to information, customised access to relevant data and being able to download information automatically in the background while completing other computing tasks.

However, for companies trying to stand out from the Web crowd, channels may represent as much of a threat as an opportunity.

One problem is that Microsoft and Netscape are using different formats for their channel browsers, so pages written for one system won't automatically work on the other.

Microsoft has pledged to make IE 4.0 able to read files designed for Netscape's Netcaster system, but companies will most likely need to develop content for both channels systems if they want to ensure the widest possible audience.

There are also relatively few development tools available to create channel content, although both channel developers are predicting this situation will improve by the beginning of next year.

A bigger problem for many small organisations, however, will be achieving visibility within the channels environment.

Both Netscape and Microsoft have signed deals with major content providers which mean that when a channel's product is installed, there is a default set of top-tier channels which are visible to the user as soon as the product is launched.

These are dominated by US content-publishing organisations such as Ziff-Davis, Disneyand and The New York Times.

Accessing channels other than the defaults requires using a separate channel browser to find information, giving an automatic advantage to companies that appear in the main list.

Officials from both companies are quick to emphasise that a diversity of channels will form an important part of their strategy.

"We're certainly not looking at any sort of lockout," said Netscape Australia product marketing manager, David Shaw.

"From our point of view, the richer the range of content and the more local interest, the better."

Netscape is hoping to develop a system whereby users installing in Australia will automatically be offered a set of channels more relevant to local needs, but this will still limit the number of top-tier partners who are immediately visible.

Interestingly, the struggle to get large content providers to join their programs means that neither company is demanding a large financial commitment to become a top-tier partner. However, this doesn't make it any easier for niche providers to achieve that kind of prominence.

Microsoft Australia Internet platforms and tools product market manager, Harvey Sanchez, said: "[Partners] just need to have relevant content that can satisfy the majority of users."

An additional constraint is that channels need to be updated on a regular basis.

Mr Sanchez said joining Microsoft's channel program required specific commitments in terms of the frequency and volume of updates.

Netscape is less prescriptive, but still expects that frequent updates will be important. Mr Shaw said: "Channels which are stale of information will tend not to be hit."

Despite the large amounts of time and money being invested in channel development, neither company expects that channels will eliminate current Web browsing activities any time soon.

Mr Sanchez said: "There will be many ways to view content.

"We just want to make it easier and more intuitive than the way it currently is."

Mr Shaw said: "It's obviously an evolving market and I don't think anyone really knows what it's going to look like."