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: Art Stone who wrote (6067)	11/21/1997 1:38:00 AM
From: Steve Robinett	Read Replies (1) of 13594

Art, Certainly AOL added subsribers throughout the quarter and that explains some of the discrepency between total number of subscribers and the number of paying customers arrived at by dividing service revenues by per-subscriber amounts ($17.37/month), but not all of it. For an interesting take on these numbers, check out Harry's respone to me: exchange2000.com Harry points out that the number of paying customers actually DECREASED during the quarter. Since AOL cut back on advertising and promotion while they put in extra equipment, the numbers also give something of a feel (for lack of a better word) of how fast AOL has to pedal just to stay even. In other words, without advertising, their dropout rate is higher than their signup rate, meaning that with 10 million customers they still aren't getting enough good word of mouth from existing customers to grow. Must have something to do with how they tread their customers. Best, Steve

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