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Technology Stocks : AOL, now I get it
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To: Allen L. Axelson who wrote (208)12/11/1996 2:29:00 PM
From: Greg Ballinger   of 496
 
Allen,

I'm not responding, solely, to trash your statement about AOL. I'm responding ( on my new msn account ) to warn you your numbers appear askew. If AOL, after their customer disatifaction shakedown, can only maintain an additional 1 million customers, their hat trick didnot pay off. At best AOL increases revenue by 20 million from new customer influx.Unless advertiser fees constitute 60-70% for AOL's overall business, they won't have enough to cover the on going upgrades they have committed to ( without dipping into the well )

AOL doesn't have nearly the same monies generated from it's original subscription base. My last variable monthly bill was $257.00. I paid it because AOLhad everything I needed for my personal business and entertanment. After the new pricing, I couldn't even get on. So replace 2-3 milliongood paying customers ( the ones that might pay for a value add scenario ) with kids and people not paying a dime more than $19.95/month. In my estimation, profits just went out the window.

I had said before, AOL would have done a greater service for customers by establishing a $50-60 cap on online fees. Then they could still atract customers that pay.

I don't mean to be a naysayer on this subject but hold out for $27 before you re-up. By then they'll have a new rabbit for the hat.

Greg
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