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Technology Stocks : America On-Line: will it survive ...?

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To: Zoltan! who wrote (917)1/1/1997 6:48:00 AM
From: Zoltan!   of 13594
 
Good article. How 'bout that lead? Sounds familiar. And calling today's business model a "scheme", kinda supercilious don'tya think?

With All the Rules Changed,
AOL Is a New Ball Game in '97
By SPENCER E. ANTE nytimes.com

Sorta answers the question who's culling whom. Amazin, the best content providers want the widest possible audience and they seem to be choosing the Web. Doubt NYT is gonna create exclusive content for AOL, so it looks like they're outta there unless AOL relents.

Many AOLrealists have said it, but it bears repeating and the article bluntly states:

"But with flat-rate pricing, most content providers are a net liability because the longer a member stays online, the more it costs AOL."

yet

"AOL's quandary, however, is that content is one of the few things that sets it apart from the pack. If the service loses too many popular content areas, it loses any edge it might have over the myriad Internet access services now being offered by everyone from local mom-and-pop startups to regional phone companies to AT&T to Microsoft."

There's much more, such as no workable advertising model, but it's late, err early, and you seem to be talkin' to yourself. Better move on before someone notices.

Happy (& Prosperous) New Year to ALL
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