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Technology Stocks : America On-Line: will it survive ...?
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To: John Kratus who wrote (5069)10/15/1997 8:27:00 PM
From: Yikes   of 13594
 
Jonh, Family of 4 = X Subscribers

A "subscriber" is one login account. If a family of four is using the same account, they should be counted as one subscriber in my book. But I don't know how AOL counts. Do they ask how many people is in a household when one signs up?

We can test the accounting easily enough. Sign up AOL tomorrow and tell them we have 1,000,000 people in our household. If next week AOL announces its subscriber base has reached 10 million, then we would know the answer. But on the downside, it would probably cause the stock to go up another 5 points. :-)

Here is an idea. We can buy truck loads of calls, then drive subscriber base up by another 5 million, sell the calls, buy puts, cancel our accounts, and watch the subscriber base fall like a rock. :-)

All kidding aside though, I think AOL does inflate their subscriber number. Counting the trial members is one way. They maybe also multiple the number of accounts with 1.5 to get the number of "subscriber". Who knows?

Yikes
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