Like America Online, Microsoft's MSN Internet service is feeling the pinch of competition from both high-speed and budget dial-up ISPs.
Microsoft on Tuesday reported that MSN in the first quarter witnessed a decline of 300,000 subscribers from the preceding quarter, leaving the second-largest Internet service provider with 8.7 million total subscribers. Company executives attributed the decline to further churn among subscribers who signed up for MSN as part of multiyear PC rebate programs with offline retailers such as Best Buy that have begun to expire.
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