Microsoft to End $400 Rebate for New MSN Internet Access Subscribers

Author:: Aileen Gallagher
Publish date:: Feb 2, 2001 6:01 PM EST

Microsoft

will no longer offer a $400 rebate to new subscribers of MSN Internet access, the software company said Friday.

Microsoft, which is based in Redmond, Wash., now plans to offer one free year of MSN to buyers of new personal computers. The company plans to enroll half a million subscribers every quarter that way. Those who don't buy a new PC could still get a $200 rebate by subscribing to MSN for 2 years, or a $75 rebate on 9 months of service. MSN access costs $21.95 a month.

MSN has 4 million subscribers. Leading competitor

America Online

, a division of

AOL Time Warner

(AOL)

, has about 27 million members.