Now Opera browser is for free

BY TOMS M

21st September, 2005: Norwegian software company Opera software has announced that it will give its browser Opera for free with a view to capture a larger market share and to catch up with its nearest rival Firefox.

For the small but fierce Opera fans, the move means that they will remove the ads from the basic version of its browser and will no longer charge a licensing fee for the premium ad-free version. 

“The idea is to get a lot more users than we have currently,” said Opera CEO Jon S. von Tetzchner. “Removing the ad banner and licensing fee will encourage many new users to discover the Opera browser.”

Banner ads and user fees contributed for half of the Opera's revenues in 2004, but the company said it hopes to make that up through revenue-sharing arrangements with online giants like Google, eBay, and Amazon. 

Opera’s stock rose 11.34 percent to close at NOK 21.60, up from NOK 19.40 on the Oslo Stock Exchange.

As part of the revenue-sharing arrangements, a Google search toolbar has been built into its browser. When an Opera user uses the Google search bar and clicks on the advertisements posted by Google, a share of the revenue reaches opera.

Mr. von Tetzchner said the decision to give away the browser is a reflection of how the company’s business model has evolved over the years. The current online landscape has made it possible for Opera to develop alternate revenue models that no longer have to depend on revenue from users, he said.

“We believe that the revenue from third-party offerings will increase in proportion to desktop revenue as more users adopt Opera,” said Mr. von Tetzchner.

Hardcore Opera fans believe that the time is not yet over for the browser to catch up with its rivals. 

As the launch of Microsoft's new operating system Windows Vista approaches, the new Internet Explorer 7 is also ready to roll. The new Explorer is believed to have tabbed browsing,improved security, and RSS capabilities. Despite the upcoming launch of IE, Opera said it considers Firefox its main rival.

“The plan now is to become the No. 2 browser in the market by getting higher market share than Firefox,” said Mr. von Tetzchner. “We would like to be No. 1, but toppling Microsoft will be tough.”

BY TOMS M