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Technology Stocks : America On-Line: will it survive ...?

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To: Yikes who wrote (10310)6/18/1998 12:04:00 PM
From: P.T.Burnem  Read Replies (1) of 13594
 
AOL had to spend millions for advertising, sending out free floppies. AT&T can do it cheaper and better. Did you say 'content'? Fork over $100M to Yahoo!

Yahoo! has hooked up with MCI to offer Internet access for $14.95/mo. I have yet to see any evidence that AOL has been adversely impacted.

Quite often, lesser brands and generics represent a better value than household names, yet find it hard to gain market share from dominant brands. IMO, this is because it takes some brain power to find value while buying a brand name is a no-brainer. As they say "Noone has ever been fired for buying IBM products".

Half of the population is computerphobic. To them, an AT&T Internet service is inherently suspect because AT&T is a phone company. Phones have been around for decades, but Internet is something new, cool, and one needs a computer to surf it. So, one buys long-distance phone service from AT&T, and an Internet account from America Online. It's a no-brainer!

PTB
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