AMERica on-Line, Another over valued company? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AMERica on-Line, Another over valued company?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jeff Olson who wrote (209)	8/12/1996 10:47:00 AM
From: Art Stone	Read Replies (1) of 222

Your calculations seem basically correct to me. There are a few other factors which could come into play. AOL's own statement is that 95% of all AOL members don't exceed the 5 hour minimums. (Your calcuation assumes 90%) The -really- heavy users (like I was) will be tempted to establish multiple accounts, each in the 20/20 plan. If the people using 100+ hours a month start having 5 accounts, and paying $100 instead of $300, that will further dilute the earnings (your analysis is static - assuming no change in behavior) Tomorrow (I believe), AT&T is releasing the combined AT&T and AOL software (This was announced back in spring, and coincides with the official release of Microsoft Internet Explorer 3.0 - which the new software uses). What effect this may have in subscriber acquisition for AOL (with minimal marketing costs) is yet to be seen. The original deal mentioned that AT&T users would get a discounted rate for using AOL via AT&T, since AT&T Worldnet is providing the network (instead of Sprint or AOLNet). I'm still looking around for the details. It's a busy day today :) AOL's 10 Q/K should be posted in a day or two, and should make very interesting reading.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next