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Technology Stocks : AUTOHOME, Inc
ATHM 23.38+1.2%Dec 4 3:59 PM EST
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To: E. Davies who wrote (13185)7/31/1999 12:46:00 PM
From: ahhaha  Read Replies (3) of 29970
 
The only reason the consortium hangs onto the $40 rate is to alleviate the out-of-pocket cost to support new installations. The consortium is in deep so they're looking for every cent. However, if you're in for a penny, you might as well be in for a pound. There is some concern about delivery delay. Maybe the $20 rate would open up the demand floodgates and precipitate scaling problems. To some extent it takes time to grow a network so that it is stable and reliable at differential loads. What new problems may suddenly develop if Fremont gets 90k new subs? How much bad press might that generate?

I think you are looking in the wrong place for revenues if you look to only to ads. You either have to build forward momentum on added value services or on content. By content I don't mean bells and whistles on the frontend. That won't generate revs. You need partnerships with content providers. Ads will help but they need to be elective in the sense of shopping catalogs.

I want @Home to be the service which enables me to download into my terabyte hard disk new films and other media on a pay-per-item basis. I want to be able to review some full motion video excerpts and select which items to buy. I want to shop using dynamic video presentation catalogs of various goods. In this case I don't pay rather the retailer does. I want access to all those things of an informational nature so I don't have to go to libraries and other dusty places. The question to answer is what is made valuable by adding the fourth dimension via high speed access?
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