America On-Line (AOL) Message Board

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Technology Stocks : America On-Line (AOL)

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To: John Carragher who wrote (30098)	8/28/1999 9:12:00 AM
From: ChinuSFO	Read Replies (2) of 41369

John, agreed that countless rivals dislike AOL's business model wherein they are assured of a positive cash flow from its monthly member charge. ATT terms it as a "dinosaur business model". But the phone companies have a similar monthly charge of 9.99 or whatever. So when ATT accuses AOL for "dinosaur business model", it is the pot calling the kettle black. Evolution in business practices is a given and I am sure Steve Case and the boys are cognizant of the inevitable which is that they will not be in a position to charge what they charge to their members. They are not asleep either. They are adding value everyday by striking e-commerce related deals such as the recent one with CompUSA. And they have creditably preserved their Instant messaging turf. The very fact that companies like MSFT are trying to take some of their business away, is a tacit recognition that the prize is in AOL's possession now. And AOL management is not asleep. I guess one of the issues that a frontrunner has to deal with is how to defend its position and it is doing that well. Meanwhile let the doomsayers and naysayers have a field day.

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