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Technology Stocks : America On-Line: will it survive ...?
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To: Sam who wrote (10425)6/24/1998 7:45:00 PM
From: J.S.  Read Replies (1) of 13594
 
Sam,

It has been remarked by more that one person that Steve's comment
are suggestive of damage control. Sure ATT/TCI can make a deal
with AOL. This will allow AOL to appear to its subscribers as being on the cutting edge. That is a far cry giving from giving AOL any advantage and the market sees this.

Regulatory issues will come into play. Here AOL is the internet analog
of the Baby Bells. They will argue for "open cable". Whatever the
outcome ATT/TCI should be able to provide an attractive alternative
that will totally bypass AOL. This is not so much a threat to AOL's
current subscriber base as it is to its ability to attract new
subscribers. Churn will of course be as big an issue as ever. AOL is
here to stay, but we are seeing the inevitable competition in this
new industry that prevents simple extrapolation of recent trends
indefinately into the future.
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