SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : America On-Line: will it survive ...?

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jeff nightbyrd who wrote (5106)10/19/1997 12:05:00 PM
From: PAL   of 13594
 
The basis for the advertising dollars is the number of audience the media can expose to. Do you get those free offers from tech magazines? One year subsription and when renewal time arrives, you have to fill in a form asking you position in the company etc. That is for auditing purposes.

In the print media, the number of circulation is audited by an independent company. Let us say Readers' Digest: the audit shows how many copies printed, sold, # of subscriptions etc, spoiled/damaged etc.

For TV viewing, there is Nielson ratings, Arbitron, Field etc which takes samples of homes and then deduce from that sample of the number of market share a network has, and henceforth the rate it can charge to advertisers.

For now there is no audit for the number of subscribers of an ISP. Anything AOL says is game, and it can and does charge whatever rates based on its own figure. Just like the fox guarding the hen house. Look at the financials, if AOL can have creative accounting like having third qquarter revenues shifted to the fourth quarter (counted twice), what would it do with the number of subs?

One question: the upcoming earnings report which is the 1st quarter, will that be an audited report or just an unaudited interim report?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext