AOL, now I get it Message Board

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Technology Stocks : AOL, now I get it

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To: Thom Taylor who wrote (154)	12/3/1996 9:39:00 AM
From: Zoltan!	of 496

NYT today has an article concerning the massive deterioration in AOL service. nytimes.com Expect AOL's costs to skyrocket with heavy usage and the deterioration in service already reported. Word is that most of the new subcribers are freebies which will not become paying members, many in fact will sign up for further free trials using another nom de plume. Others will flee as AOL's reputation for inferior service is driven home. Notice that the article states that new users are pressured to accept the unltd plan and "The company has not disclosed its projections on how the new plan will increase revenues". My guess is that ultimately most people are rational (even AOLamers) and that will mean heavy users go unltd while the majority of AOLer's stay with the hrly plan. That is what AOL has been trying to prevent, since it means widening losses. Remember, AOL needs to sell more stock soon - that's the reason behind the orchestrated hype efforts by the financial community to push the stock. Fundamentally, AOL is in worse shape then it was a year ago and getting more so every day. Regards

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