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Technology Stocks : America On-Line: will it survive ...?
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To: James F. Hopkins who wrote (2807)4/9/1997 12:40:00 PM
From: Allen Plyler   of 13594
 
James, Northeast Investors has AOL as one of its recent top sells according to IBD.

As far as an update on MSN versus AOL, the access for AOL has improved quite a bit. However, the default 14,400 connect is like a standard. So although you may be happy with the connection, the speed is not there. On MSN there is *always* a connect and the internet is faster even on the same machine. So basically, between the two, MSN would be the preferred provider for the internet. But the content on AOL might have something for everybody. Their financial news and info is pretty good.

The chat room ads are absolutely bogus. Count any ad projections from AOL to be softly buried in "other revenues" when the numbers come out.

As far as the subs, this is the old "eyeballs" theory. Why spend advertising dollars on a fickle audience that is won or lost on a single mouse click? How about trying to go for the 60 million "eyeballs" on MSNBC? And what about all the "eyeballs" that would be interested in "WebTV" which ironically, is now owned by MSN. Did it ever seem funny to you that AOL made such a fuss about spending 300M to improve their access, and then spent another ton on advertising the fact, when MSN quitely just spent over 400M to make a better product for the consumer?

Big Al
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