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: Brian K Crawford who wrote (522)	11/4/1996 4:20:00 PM
From: Art Stone	of 13594

<<...50% of users will opt for unlimited. Balance will be a mix of the $4.95 + hourly charge deal, the $9.95 + deal, and the use your own ISP plus AOL flat rate at $9.95 unlimited deal. >> << Average monthly services revenue per subscriber had been rising from $14.50 in 1994 to $16.28 in fiscal 1995, to $17.96 in fiscal 1996. Management estimates this will now fall back to $17.00 per month in fiscal 1997 as a result of the unlimited pricing option. >> Okay. Maybe I'm a little slow today. How can half the accounts pay $19.95/month, and the other half pay from $4.95-$9.95, and wind up with an overage of $17.00 ? AOL isn't planning to immediately put the prepayments into "income" are they? (The reverse of the deferred subscriber acquisition amortization techinque)

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