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Technology Stocks : AUTOHOME, Inc
ATHM 23.89+2.2%Dec 5 9:30 AM EST
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To: KailuaBoy who wrote (18750)1/13/2000 7:45:00 AM
From: E. Davies  Read Replies (1) of 29970
 
Why would people pay extra for AOL content?

Roughly 50% of the internet users in the country already pay extra for AOL content. People actually *like* AOL out there.

AOL is gonna have to pay out the patoot to build a network and they are gonna have to pay for all the stuff the MSO pays for.

The TWX network is pretty much already upgraded, so its not like what T had to go through with TCI. It's also better than "net $20" for AOL because right now they pay WCOM for dial-up users.

Beep beep is "nothing".
Fits the AOL style doesnt it? Are you sure that "nothing" is bad?

The ATHM structure will provide much greater quality *if* the general internet remains too overloaded to handle the broadband traffic. That is not a given. As a matter of fact consider what will happen when everyone is broadband. ATHM cannot handle the traffic of the entire internet! When everyone is broadband the net itself will have to handle it and "nothing" may end up being the right architecture after all.

In the meantime we have AOL promoting the value of "nothing". The sheep will freely accept that "nothing" is right. Has @home ever managed to show the public the value of its backbone? Have they ever even really tried?

Steve Case just fumbled big time.
He had no choice. Given the reality of the situation he did the best thing I can imagine to save AOL's sorry hide. He traded wealth for power.

Eric
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