America On-Line: will it survive ...? Message Board

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

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To: jack rand who wrote (5691)	11/8/1997 12:43:00 AM
From: Czechsinthemail	Read Replies (2) of 13594

I have some questions about the AOL subscriber numbers. I've noticed the pattern that free trials end with decisions to cancel which AOL responds to with extended free-trial months. How does AOL account for subscriber revenues? Do they realize it when the cash is in the bank or when it is ostensibly receivable? Specifically, how do the free trials fit into the accounting picture? The numerous extended free trials seem to be largely an attempt to bolster ad revenues based on number of subscriber/viewers. But do they also get counted (and then subsequently dropped during earnings restatements) toward earnings? AOL is funny in the way it seems to attract new users and then inevitably alienates them with busy signals, email problems, etc. I've known many friends who have registered with AOL, but very few have stayed very long. Baird

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