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Technology Stocks : America On-Line: will it survive ...?
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To: Paul Houle who wrote (11454)10/13/1998 1:42:00 PM
From: Steve Robinett  Read Replies (2) of 13594
 
Paul,
You're right. The article had no actual evidence of AOL's e-commerce partners defaulting--yet. My point, using the comparison to the radio station I worked with, was that AOL can jerk ads from people who don't pay and replace them almost immediately with someone willing to pay. In other words, they can do quite well living off the onetime, upfront payments even if these small companies fail to make later payments. Though there is some danger of AOL e-commerce partners starting their own web sites, AOL still offers in-your-face advertising to 12.5 million people. That will continue to be useful to a lot of advertisers.
Best,
--Steve
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