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: P.T.Burnem who wrote (10307)	6/18/1998 2:08:00 AM
From: Yikes	Read Replies (2) of 13594

Oh, come on. You are comparing apples with oranges. For $25B AT&T could produce and distribute a better soft drink then Coca Coca, but how many people would actually buy it? Just like Coca Cola, America Online is a dominant brand, and brands sell themselves. Some ISP's already offer free (advertisement-supported) Internet access. So what? AT&T has the band name recognition. What's more, it has the network structure, the distribution, and advertising agencies. People switch long distance companies to save $150 per year. So what should AT&T do? Print on the monthly bills: $9.95 flat fee for unlimited Internet access, saving $120 per year over America On Line. It should be able to sign up 10 million subscribers in 6 months, easily. AOL had to spend millions for advertising, sending out free floppies. AT&T can do it cheaper and better. Did you say 'content'? Fork over $100M to Yahoo! and C\|Net and presto! Content.

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