MSN Boss Talks Expansion; Preparing Premium Version

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: Yusuf Mehdi, Microsoft corporate VP for the MSN outlined plans for MSN at the company’s Financial Analyst Meeting. Mehdi said these efforts included improving customer satisfaction and decreasing churn, building a premium-services business, making profitable customer acquisitions, winning in international markets, and delivering direct-marketing solutions and a new advertising platform. “We will also launch a global software subscription service that could be a huge area of growth and generate half of the group’s revenue in a few years,” Mehdi said.

A News.com story says that the new version of MSN, tentatively called MSN Premium, will be an add-on for existing phone or cable broadband users. Microsoft has not released any pricing details but the company is exploring monthly and yearly rates…Microsoft currently offers a similar service for broadband users and charges $9.95 a month.

Jupiter analyst Joe Wilcox has also been blogging from the analyst meet, and has two interesting posts about MSN:

MSN Watch 1: “MSN offers a great range of services, but the division has yet to find its niche to profitability. Microsoft always seems to work best under pressure. Well, it

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