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What led to Compuserve, the first major commercial online service in the United States, failing to become today's Web giant?

Founded in 1969, the company offered limited dial-in services in the mid-1970s. CompuServe dominated the field during the 1980s and remained a major player through the mid-1990s, when it was sidelined by AOL.

In the year 1979, it offered online services and by mid-1980s CompuServe became one of the largest information and networking services companies. Compuserve was also the largest consumer information service in the world at one point in time.

However, with the rise of the World Wide Web in 1994, the company's core business started fading. The company also made an attempt to offer users internet access with CompuServe services, an experiment that failed miserably.

In comparison to Compuserve, AOL offered flat-rate "unlimited" pricing (versus CompuServe's hourly charges) and a simpler interface. The company also launched a massive CD marketing campaign. According to experts, what led to the company's downfall was the lack of the will to invest in converting its advantages into a sustainable lead.

In 1997, CompuServe was acquired by AOL and the CompuServe Information Service began operating as an online service provider and an Internet service provider. The original CompuServe Information Service, later rebranded as CompuServe Classic, was finally shut down on July 1, 2009.