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: jack rand who wrote (9584)	4/21/1998 12:35:00 AM
From: Tim Kenney	Read Replies (1) of 13594

>Look at all the companies in deep hock for multi-year ad deals (e.g. NTKI, PTVL, J-FAX, CYBERMEALS, etc. etc.). Odds are that all won't generate enough business to cover their wanton spending. And, IMO, Tel-Save is an accident waiting to happen.< That all depends on just how stupid AOL members really are. I used to think the same as you--i.e., no way would these companies paying AOL to feature their crap ever recoup their investment. Then I realized that these companies may not be as dumb as I thought. They must realize that anyone using AOL is pretty stupid. After all, high prices for bad service? Not an endearing combination for most people, but AOL'ers love it. So, maybe the likes of Tel-Save figure that AOL'ers are so stupid that it is worth paying AOL to market long distance service to AOL'ers at rates which are met or beaten by more reputable long distance providers. Why? Because, if AOL'ers are too clueless to shop for internet service, they may not shop for long distance service either, believing erroneously that if it is offered on AOL it must be a good deal.

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