SI
SI
discoversearch

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: will it survive ...?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bob Kimball who wrote (4929)9/29/1997 10:24:00 PM
From: Todd Daniels   of 13594
 
>>I think overall INET sub growth is slowing, especially in the

You may have noticed that following a flurry from mid-June to about
mid-August, AOL new sub marketing has been minimal. TV spots rare,
mailings few to non-existent. Part of it is seasonal; but at least
some of it reflects diminshing returns on marketing $.

AOL and its underwriter analysts (and wanna be ones) have spun the
slowed rate of growth of subs as "controlled growth". It's more like
"beyond our control".

The rate of growth of home PC penetration has declerated to barely
four percent in 1997 vs. 25-35% rates 1992-1995. Though overall
sales have been running 15-18% ahead of 1996, the percentage that
are first time buyers has dropped markedly -- down to 30% from 50-60%
95-6 and 70-80% '92-95. (Dataquest, Zona, Consumer Elecctronics
Mfgs' Assn, etc.)

While those with PCs but not online are potential source of new subs,
they have been hit on so many times by now that conversion is gets
tougher and tougher.

Spin about "controlled growth" requires perspective that just 16%
of US homes are online. IOW, market shares in the *real* mass market
future are far from slam-dunk -- especially when via work and school
(including college) more and more are being acclimated directly via the Internet.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News