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Technology Stocks : America On-Line: will it survive ...?
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To: Sam who wrote (8739)3/12/1998 7:38:00 AM
From: Yikes  Read Replies (1) of 13594
 
Gee, last I checked Yahoo! makes money doing the exact same thing - ad revenue! So now your argument is that because it is free it must be better? When did this paradigm get established? I guess because Webcrawler is a free service, it must be better! I'm getting a good chuckle when you say everyone uses Yahoo!. All 50 million websurfer huh? Who did that study?

When selling ads on TV, shows that has higher Neilson's rating (hence viewership) command higher rates. Yahoo! is free to use, so it can get a lot more viewers than AOL. Ask 50 million websurfers what they would show to a newbie as introduction to the web, Yahoo! would be the most common answer. Even among AOL members this is probably true.

I don't know why it is so difficult for us to agree on this. AOL is like a local cable company that broadcasts only to 11 million, Yahoo! on the other hand is a free global network channel that everyone has access to. So who can charge a higher ad rate?

By listing what's on the Internet, Yahoo!'s effective content is everything on the net. So Yahoo! spends a lot less money than AOL does to create the so-call content. AOL also has ISP & POP overheads. It doesn't matter who owns the modems. AOL still has to pay for their maintaince and usage one way or another.

I can understand though, if you are an AOL member, that you don't visit Yahoo! very often. So to you, none of this makes sense.
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