Development
Under the guidance of Henry Heilbrunn, Prodigy developed a fully staffed 24×7 newsroom with editors, writers and graphic artists intent on building the world's first true online medium. The initial result was that Prodigy pioneered the concept of Internet portals—a single site offering news, weather, sports, communication with other members, and shopping for goods and services such as groceries, general merchandise, brokerage services, and airline reservations. The service provided a number of lifestyle features, including popular syndicated columnists, Zagat restaurant surveys, Consumer Reports articles and test reports, games for kids and adults, in-depth original features called "Timely Topics", bulletin boards moderated by subject matter experts, movie reviews and e-mail. Working closely with Henry in the early stages of Prodigy's design, Bob Bedard pioneered the business model for electronic commerce. Additionally, Prodigy was also the service that launched ESPN's online presence.
The service was presented using a graphical user interface. The Data Object Architecture wrapped vector and incremental point graphics, encoded as per the North American Presentation Level Protocol Syntax NAPLPS, along with interpretative programs written in the proprietary languages TBOL (Trintex Basic Object Language) and PAL (Prodigy Application Language). NAPLPS was authored in 1979 by Jerry Soloway and Bill Frezza from Bell Laboratory and Bob Bedard from CBS Laboratory. The team collaborated on this standard to enable the display of colors and graphics in support of electronic advertising, publishing and commerce. The initial emphasis was on DOS and later Microsoft Windows. The Apple Macintosh was also supported, but the Prodigy screens were not always configured to the Mac standard, resulting in wasted space or cut-off graphics.
Prodigy's initial business model relied more on advertising and online shopping for cash flow than monthly subscriptions. Subscribers were charged a flat monthly fee that provided limited access. A monthly rate was charged for a set usage time, and any time spent connected to Prodigy exceeding that set usage time was charged to the customer.
Prodigy's shopping applications initially underperformed relative to expectations. Reasons for difficulty in online shopping for Prodigy included the perception that online shoppers would pay a premium rather than expect discounts for merchandise. Another reason for poor online merchandising was the nature of the graphics presented due to inherent limitations of technology at the time. Using the early NAPLPS graphic standard, it was not possible to render realistic images of products. As such, while commercial clients with presence on the Prodigy Service might have realized a measure of success with an electronic order blank supporting a print catalog, it was otherwise difficult and challenging for online merchants to market products.
Despite these challenges, Prodigy was largely responsible for helping merchants such as PC Flowers become some of the earliest e-commerce success stories. However, revenue from advertising was limited.
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