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Technology Stocks : America On-Line: will it survive ...?
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To: Brian K Crawford who wrote (5192)10/23/1997 8:17:00 PM
From: Keith O'Neill  Read Replies (1) of 13594
 
It's purely mania. A price hike isn't too likely because:

1) AOL differentiation is rapidly eroding, the idea that they have
any sort of monopoly is incorrect. A price hike will lose paying
subscribers who are already paying the way of several million
freeloaders.

2) They've changed their business strategy to go after eyeballs.
For every trial member they sign up in say Albania AOL's market
capitalization increases $1,000. They aren't going to do anything
to damage that free money. And AOL can attract more ad revenue,
though I don't know how many mail order books and flowers Albainians
buy from US companies.
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