<< AOL is a media company, not an access company. Revenues will grow
enormously from here as advertiser after advertiser chooses them due to their dominance. Wait until Cable modems and ADSL/HDSL modems get here and access speeds increase 100 fold. Internet traffic will explode and AOL will be a huge beneficiary. >>
I couldn't agree with you more on what AOL MUST become. At this point they are an ISP who has ticked off their users something aweful. They are heading towards media provider on the net, but everything I ever get sent to on their server is SSSLLLLLOOOOOOOOWWWWWWWWWWW. They have a unique problem not often seen in most industries ... because they were a first-mover into providing "Internet Access (and content) For Dummies", they also were a first-mover in purchases of equipment. This equip was 4 times the price as today's and does 1/10 the speed, etc. of todays. They needed (and still continue to need) to upgrade for BIG BIG BUCKS. Their first-mover turns into an albatross!!
With that said, they have built one heck of a brand name and a brand strategy. This is why the Street loves them so. Great marketing has won some not so big ad/mall deals. Their competition in the mall area is better than they are. Their ad space will take a back seat to a Yahoo and the like (Cable Modem ISP's if their smart as well), because they won't get the hits on an Internet Stop basis. They get the hits now due to their captive audience. I see a rocky road ahead (near-medium term) for the conversion of their, shall we say, "Intranet" (propriety content povisions) setup which holds users captive, to their Internet setup, which Begs, Borrows and steals (like everyone else out there only on the net) to get the big H's (HITS!!!)
FWIW, MHO, AOL won't get there. Also, not to bore you further, look at the Balance Sheet ... Insolvent technically (Current Ratio < 1)!! Very tough road ahead indeed!! Curious as to a reply from any on thread. |
