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

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To: Brian K Crawford who wrote (1327)1/31/1997 9:53:00 AM
From: Joel Sternberg   of 13594
 
>AOL will receive a commission of 5-10%. ...revenues from Barnes & Nobles
on-line bookstore in AOL could generate approximately $30 million in revenue in C97....

That is about 30 cents per share from one deal.<

Damn, those AOL'ers must read a lot of books when they are not online. Let me see...If AOL gets a 5-10% commission, in order to get $30 million in revenue from B&N, $300-$600 million of books must be sold. Now with the inflated 8 million subscriber number, it means each AOL subscriber must be spending an average of $37.50-$75 on books. I don't buy into that one. I don't even think I buy into AOL getting a 5-10% commission--well, maybe 5%.

It should also be pointed out that while B&N will be the exclusive seller of books on AOL, AOL will NOT be the exclusive venue for B&N on the internet. B&N plans to establish their own web site, so they have not exactly made a big commitment to AOL.
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