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: cody andre who wrote ()	3/7/1997 1:25:00 PM
From: Todd Daniels	of 13594

Case says marketing to resume May at earliest, and possibly "in the summer" usatoday.com Given that and the past month of marketing slowdown, it's real hard to believe notion of "capping" membership at 8m. A 3-5 month hiatus could take 'em down to 6m EASY. Bear in mind that as of 12/31 they had 500,000 trial subs most of whom likely didn't go to paying status becuase of the overload problem. In the face of markedly slowing growth of the installed base of home PCs (3-4%/annual), recouping lost members will be arduous and expensive. Another implication is that usage is expanding along with capacity in Sisyphus fashion.

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