America On-Line: will it survive ...? Message Board

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Technology Stocks : America On-Line: will it survive ...?

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To: jack rand who wrote (1333)	2/3/1997 3:06:00 AM
From: Curtis Philips	of 13594

<<All of the AOL bull analysts say only "$15-$20m in REFUNDS. All conveniently forget to estimate how many will take the unrestricted offer available to all of a free month. That has a cost. $19.95 lost revennue and $0.35-$0.45/hr to provide service. Could be a big number.>> Right. If AOL has only 6 million real members and only half take the month (figure the only ones not taking that will take the hour-based rebate, but only if it's worth MORE than the flat month, or IF they plan to get the money and QUIT), that's 3*$20, or $60 million in lost revenues. PLUS ongoing liability for future underaccess and more people quitting (and none joining). My sister quit last week, and got 2 followup calls begging her to rejoin, with 2 free months offers. She declined. My OTHER sister is a member and plans to petition for the full 2 months refund. I know 2 others still with the service. That's a 50% fallout based on the 4 people I know with AOL...

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