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 ()	11/20/1996 10:14:00 AM
From: Zoltan!	of 13594

AOL is gonna lose this one, but not before it inflicts more damage to its already poor corporate image. As AOL switches virtually all to their unltd plan, they claim they are not changing plans, just prices. That is a stupid argument which will not prevail. The fact that they make that argument shows more than a hint of desperation. AOL knows something they won't disclose. They used every device and strategy to forestall having to offer an unltd plan. They knew that if only the heavy users opted for unltd they would lose the most lucrative segment of their profitless business. That is why AOL is taking the unusual step of putting everyone into unltd unless they actively object. They are hoping that the 90% who use 5 hrs. or less will, through inertia or laziness, not object. The additional revenue would more than cover the lost revenue from the heavy users. Don't you just love the contempt AOL has for its members? In essence, they are relying on the stupidity of the mass of AOL users to bring them hitherto unachieved profitability. Hmmm, maybe that's not such a bad bet after all? news.com Regards

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