Money-Losing NetZero Hits No. 2

Free Internet service provider NetZero will announce today that it has signed up more than 3 million users since it launched its service in October 1998. That would make the money-losing ISP the second-largest in the country, behind America Online, which has nearly 20 million members. Westlake Village-based NetZero was the first company to offer free Internet access to customers willing to share personal information and receive targeted ads. Several companies have followed suit with their own free Internet access services, including Excite@Home, which joined the fray last week. Some analysts continue to question the long-term viability of free ISPs, but others believe they can turn a profit if they amass large enough audiences to attract major advertisers. About half of the 3 million registered NetZero users have used the service in the last 30 days, a typical usage rate among large ISPs, said company spokeswoman Melissa Robinson. But she conceded that NetZero is likely to fall to No. 3 once Pasadena-based EarthLink Network merges with MindSpring Enterprises.