Whose browser has the most users? It depends.
A new study seems to show that Netscape Communications Corp.'s Navigator browser has slipped from its perch atop the browser market. While Microsoft Corp. officials express delight, Netscape (Nasdaq:NSCP) officials dispute this, and say it doesn't matter even so.
The fudge factor in this spin cycle centers on America Online Inc. users. In straight-ahead comparisons, Netscape's Navigator browser bests Microsoft's (Nasdaq:MSFT) Internet Explorer browser, 41.5 percent to 27.5 percent, according to International Data Corp.'s study on browser market share, released Monday.
Accounting for AOL
But IE is the default browser on AOL, so its users, technically speaking, use IE. Adding AOL's 16.3 percent of Web users to IE's total means it edges out Navigator, with 43.8 percent of the market.
IDC splits out AOL (NYSE:AOL) into its own category, saying it would be misrepresentative to put AOL into the IE totals, since AOL users can't choose their browser. Nonetheless, IDC analyst Joan-Carol Brigham conceded that "by technology, (Microsoft) has passed them for the first time." A gushing Microsoft official called the results "gratifying," and said Microsoft would continue to try to build market share.
"The momentum's been behind IE for about two years now, and if we do our job in providing the best browser out there, we think it'll continue," said Mike Nichols, a Microsoft product manager.
Netscape: It's the portal, stupid
Netscape officials beg to differ.
"We still have a commanding lead on IE," bristled Dave Rothschild, Netscape's vice president of client products.
"AOL's user interface just recirculates you in AOL. It doesn't drive any traffic for Microsoft. It's interesting for technologists, but how does it impact their business model? It doesn't really help them very much."
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Rothschild also noted that the study measured Web usage from January through June. Netscape didn't launch its Netcenter portal site until the end of June. Since then, he said, the site has had a record number of page views and user registrations, and saw 12.5 million downloads in a 10-week period.
Besides, Rothschild sniffed, "the browser wars have really shifted to the portal battle."
Netscape continues to lose ground
What is clear is that Navigator continues to lose ground in the browser market, and Explorer continues to grow. Navigator's share was down 9 percent from the end of 1997, while Explorer's share rose 4.7 percent.
This surprised Brigham, who thought Netscape's market share would stabilize after it stopped charging for Navigator and moved its source code into the world of freeware.
Brigham thinks Netscape share should stabilize now. "I would expect it to stabilize, although Netscape hasn't really put a lot of effort into browser marketing, where Microsoft just hasn't let up. That makes a big difference in perception."
Netscape's corporate strategy has shifted sharply away from browsers, to the point where the company no longer refers to itself as a browser maker. The shift has taken place as the U.S. Department of Justice has charged Microsoft with anticompetitive tactics in the browser market.
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