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Technology Stocks : America On-Line: will it survive ...?
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To: Allen Plyler who wrote (2656)4/2/1997 8:18:00 PM
From: James F. Hopkins   of 13594
 
Hi Al: my 2 cent worth..I think AOL knows it needs a new game plan,
there will be some synergy..in my dealings and talking with the
local ISPs, commercial accounts are the profit..users just help
pay the rent..there is no profit if you just have subcribers like
the general public..margins are to thin..you don't want to lose
them, as they offset the cost and keep the modems going, and mostly
in the non prime times, as most users are at work in the day..but
really even the local ISP..has to beat the path and try to get some
comercial accounts..the rent is higher..and you give the a .com
address with considerable hard drive space you don't give to
the general public..so AOl would be getting I guess the com
accounts that CSRV has..this may help things out from a biz
point of view..I don't think she'll get CSRV cheap..and it
will likly cause a hit on AOL stock..this synergy may take a
while to kick in..and the reality level of profits may never
justify the high stock price. But she could survive..were what
she has been doing up to now, there is no way to make it, the
margins are just not there dealing with the general public,
you got all the collages and .org ( non profit org. ) to compeat
with..and at best the general public may help you offset the
overhead..but counting on that as a source of profit is pie
in the sky, you got to have more, now the BYOA..that's a little
gravy..if you can really get people to take to it, but with so
much free stuff on the web, and more coming every day
it's not a gravy you can count on. As you likley know by now,
there is 2 e-mail services that don't charge a dime to handle
your e-mail. If you don't mind the adds. <G>
Jim
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