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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 227.90

+0.4%

Dec 9 3:59 PM EST

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To: Tom Kearney who wrote (72130)	8/5/1999 12:43:00 PM
From: Eric Wells	Read Replies (3) of 164684

Tom - I want to make sure I understand you. I don't know what AOL charges but I am assuming that it is somewhere around $20 a month. Don't you believe that some portion of AOL subscribes might be motivated to save $240 a year and move to MSN if the service is free? And if Microsoft makes this move of offering free service, don't you think that other service providers might respond in kind, putting enormous price pressure on AOL? Even if AOL were to cut their access charge in half, that would strip away roughly 37% of their current revenues (access revenue makes up 75% of AOL's total revenue per their income statement). If I were Mr. Case, I would be very concerned about this. (by the way, I'm neither long nor short AOL at the moment). Thanks, -Eric Wells

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