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Technology Stocks : America On-Line: will it survive ...?
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To: Dick White who wrote (662)11/22/1996 12:19:00 PM
From: jack rand   of 13594
 
>Some people must really hate AOL, otherwise why pay 19.95 for
>75% of the pie.

Problem is:

1) The 85% not online don't have a clue about that, and
their `brand' awareness is `Internet' not AOL.

2) As the telephone wars heat up, access will become
a promotional gotta have -- which means that
the telcos' $5b per year of ad budgets chasing
$140b of telephone business will be leveraged to
selling access. For example, every 15 minutes in
prime time the Dime Lady's saying "switch now
and get Internet"
AOL simply doesn't have the $ to compete against
that marketing leverage -- and the telcos know it.
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