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: steve lipson who wrote (5750)	11/11/1997 12:30:00 PM
From: Steve Robinett	of 13594

Steve, As to whether those particular advertisers matter to the big picture of online advertising, I have no idea. What rang true about their complaints was something like the style of the complaint. If you didn't know they were advertisers, you would think they were subscribers from a few months back. In other words, AOL seems to me to have a cavalier attitude toward subscribers and advertisers, a style of doing business that irks people with its lack of concern for the guy actually paying the bills--arrogance might be the right word. I recognize this discussion is a long way from number-crunching but still useful. Speaking of number-crunching, since AOL cut back on its own promotion and advertising while it bulked up its network and since promotion and advertising costs are expensed while network expansion is depreciated over time as a capital asset, how much of this quarter's $.12/shr comes from reduced advertising/promotion spending with only a small part of the spread-out capital spending costs included? Best, Steve

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