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Technology Stocks : AMERica on-Line, Another over valued company?

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To: Jeff Olson who wrote (101)5/27/1996 1:57:00 PM
From: Will Cunningham   of 222
 
I wanted to thank you for your analyses of AOL, it is a difficult
company to pin down with traditional fundamental analysis methods.
What do you think about CompuServe leaving their proprietary content
to become obsolete and following an Internet-only strategy? How will
this make AOL look in the eyes of investors, subscribers, and analysts?
AOL now stands by itself in relation to proprietary conent, unless
I have missed someone. My first reaction to the CompuServe plan is
that it is a mistake and not helpful to CSRV subsribers who enjoy
having easy to find CSRV content as well as Internet ability.

AOL subscribers seem to like some of the proprietary stuff and also
like the ease of use and structure that the AOL experience provides
them. The ultimate thing that a subscriber, user of the Internet, or
user of computers would love as a killer application, is language
translation software and an interactive machine that responds to
voice commands--a long way off?

What does AOL need to do to grow? Can they continue to grow at a
US pace overseas? Should they scrap their proprietary content? I don't
think that the proprietary content AOL employs is a burden to their
service. It seems to me that this content that is available now to
AOL subscribers at $20 for 20 hours of use is a plus for the long-term.
What do you think Jeff, others?
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