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Technology Stocks : America On-Line: will it survive ...?
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To: Howard Hoffman who wrote (7281)2/10/1998 1:20:00 AM
From: FuzzFace   of 13594
 
<RE $2 increase. Since payment is via credit card, users will not feel the increase. I doubt AOL will have 3 or 4% cancellations from increase. I will think about but probably will not act.>

When you put it like this, it makes sense. But what about the already high "churn" rate? Those that do leave will be even less inclined to return now. And potential replacement subscribers will notice the extra cost.

A year ago I cancelled my Compuserve acct because I hated it's price structure and, living in DFW area, can find at least 3 ISPs offering unlimited internet access for less than $90/yr (prepaid). So for the price of 4 months of AOL, I get a full year of internet service. With my current ISP, I usually connect at 44k, and almost never get a busy signal.

The only disadvantage is if I travel and want to connect to my ISP, it is long distance. But if I travel for work, I just use the branch office's internet connection and set my browser to read from my ISP's mail server. On vacation, I generally don't care if I don't get on the internet.

So what I don't understand is, why do people pay 3 times what they have to for unlimited internet access? Is it a name-brand thing? Ignorance of where to go on the web to find the equivalent of AOL's extra content? Inertia? The "devil you know" effect? A combination?
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