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Technology Stocks : America On-Line: will it survive ...?
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To: grogger who wrote (82)8/27/1996 4:35:00 PM
From: P.T. Burnem   of 13594
 
Rob,

I tried AOL and found it disgustingly slow. I closed my account
but they kept charging my credit card anyway. It took me ~3 months
to get my money back.

There are several reasons why AMER is going down the tubes:

they find it harder to lure new subscribers,
which is why they offer 15 hours of free time
instead of 10 in the past;

they are losing _active_ subscribers to their
competitors who offer a low flat-fee rate;

they use creative accounting to shift new subscribers
acquisition costs into the future making their
quarterly numbers look better;

noone in the business is making any money (WSJ had an
article on the subject a few days ago);

they are headed by a former Pepsi marketing honcho who
thinks that selling Internet access is the same as selling
sugary water - all one needs is to develop a brand name.

PTB
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