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Technology Stocks : America On-Line: will it survive ...?

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To: Tim Kenney who wrote (4921)9/26/1997 3:49:00 PM
From: Harry Larson   of 13594
 
Cowen sez AOL 10% more expensive.......

-- Here's what Cowen said in a June gush about AOL-CUC

The Internet Observer, 06/03/97
Cowen Internet Research
A back of the envelope analysis indicates the upside CUC has by
marketing on AOL. CUC saves print, production, promotion.....
blah blah......If AOL charges CPM of $30 per thousand impressions
and gets 5% of those to click on to the contest page, and then gets
2% of those in the contest page to enroll.....then the cost to
acquire the customer is $30......Add AOL's bounty of approximately
15% on the $50 yearly membership fee,
*** and CUC's customer acquisition cost is $37.50. ***

-- Here's what Cowen said yesterday in a gush report on CUC.

The Internet Observer, 09/25/97
Cowen Internet Research
CUC's core individual customers (53% of the member base) generate
approximately $35 in revenue per year.
*** It acquires these customers at a cost of $34 ***

And, as we all know, those `back of the envelope' exercises for
which Cowen and others are so famous use optimistic assumptions.
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