America On-Line: will it survive ...? Message Board

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

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To: craig who wrote (4882)	9/21/1997 1:13:00 PM
From: Todd Daniels	of 13594

>>huge subsciber numbers and hope to gain more advertisers...does >>that sound accurate ?? Yes except that AOL's reported that Q4 average revenue per sub per month was $16.77, and that only $3.47 of that was ad-commerce revenue. IOW, $13.30 was access revenue -- nearly 4 times ad revenue. >>i wonder how many "paying" subs aol has? AOL refuses to report even number of trial subs, not to mention churn or marketing cost of acquisition (unlike the standard disclosure in the cable industry AOL constantly compares itself to). Cancellation freebies would be the last thing they'd reveal. However, note that dividing AOL's reported Q4 "Online Service Revenues" (the access piece) of $385m by 3 times the $13.30 monthly figure is 9.65m versus the 8.6m subs AOL reported as of 06/30. I assume that the average per sub per month reflects churn (new trial subs and lost ones) AND other subs given free time throughout the month. Not enough data to figure amounts of each of those categories. But the 1 million discrepancy decline above does give picture of their combined impact.

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