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

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To: Gaffa who wrote (2991)5/5/1997 7:29:00 PM
From: Todd Daniels   of 13594
 
>There is BYOA price plan @9.99 and other cheaper plans as well...

OK...

Assume:

- 500,000 foreign members equivalent to $19.95/mo revenue.

- 10% @ $4.95/mo. $14.85/q x 800,000 = $ 11,880,000
- 10% @ $9.95/mo. $29.85/q x 800,000 = $ 23,880,000
avg 1 hr extra time
@ 2.50/hr. x 1,600,000 = $ 4,000,000

subtotal = $ 39,760,000

- 80% @ $19.95/mo. $59.85/q x 6,400,000 = $383,040,000
-------------
TOTAL $422,800,000
less $381,486,000 Online Service Rev
= $ 41,314,000

$41,434,000/$59.85 = 690,292 subs unaccounted for........

Some on initial 30 day trial. How many on extended free time?
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