CNET Inc, the San Francisco-based media firm that produces television programming and websites specializing in computer and internet news, will launch a free online service in September. The new service, to be called Snap! Online, will offer news, features, chat rooms and other links that will thrust CNET into direct competition with established service providers such as America Online Inc and Yahoo! Inc. The service will be promoted and offered in conjunction with partners; internet access providers and other businesses who will offer the service through their websites and maintain a presence on the Snap! homepage. Revenues for the service are expected to come from license fees for partners and the selling of advertising on the Snap! site. CNET has been planning Snap! for about six months and already has signed deals with AT&T Corp, Bell South Corp, Sprint Corp, EarthLink Network Inc, MCI Communications Corp and Mindspring Enterprises Inc. EarthLink has agreed to distribute 10 million EarthLink/Snap! co-branded CD-ROM starter kits beginning in the fourth quarter of the year. Talks are ongoing with about 30 other ISPs, brand marketers and computer manufacturers about possible partnerships. CNET, in which Intel Corp recently increased its equity stake to 6% (CI No 3,176), has hired about 150 employees for the new venture over the past few months.
