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Technology Stocks : America On-Line (AOL)

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To: puborectalis who wrote (31298)	9/22/1999 5:23:00 PM
From: StreetAdvisor	Read Replies (1) of 41369

There has been some discussion surrounding my most recent article on America Online which mentions a possible AtHome alliance. Basically in the article (http://www.streetadvisor.com/Article/Article.asp?aid=689), I mentioned that AOL might have an ATHM relationship in the bag. Here's the story from Excite@Home's VP of Network Infrastructure: Excite@Home proposed that AOL give their software to all AtHome users, for free. Since the subscription fee really just covers infrastructure costs, which AtHome would foot in this arrangement, nothing is lost. AOL picks up broadband distribution on cable (they already have DSL), and a few hundred thousand new customers. They then make all their usual profits with advertising and marketing. The inside story from AOL is that AT&T offered AOL 25% of subscription fees from cable users, but wanted a cut of advertising. AOL won't go for this, they'd rather let AT&T keep 100% of the cable fees while they keep all ad revenues. Although no deal has been announced, word is that it is close and may be announced as soon as AOL 5.0 premieres (in October). Kevin Prigel streetadvisor.com

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