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Technology Stocks : America On-Line: will it survive ...?
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To: Brian K Crawford who wrote (232)10/5/1996 12:53:00 PM
From: Kashish King   of 13594
 
Let's try and break this up a little better to figure out where AOL fits in. The existing communications infrastructure is used by both AOL and the internet. This infrastructure is changing and both models can benefit from those advancements and improvements. The information moving through the fiber optic cables, through the satellites and through the copper wires is not formed or originated by the companies providing the communications service. The voices and faxes and cable television programs that use the communications service do not have anything to do with this infrastructure. The internet is an extension of this infrastructure.

For all intents and purposes, AOL decided to invent its own extension to the infrastructure thereby locking in people to their browser and making it impossible for an independent company to set up a "presence" on AOL without going through them -- that is, you can't compete with the Motley Fool without going through AOL just as they did.

AOL may survive as a content or information service provider on the internet but they will be one of thousands, perhaps tens of thousands. The game is over as far as using their proprietary browser to interact with a select number of information services whose sponsors are also locked into their proprietary servers and databases.

AOL is indeed doomed, it will not survive. Their stock stands on the shoulders of public ignorance. When they become enlightened over the next few weeks and months you can say farewell to AOL and CompuServe.
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