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

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To: jeffbas who wrote (939)1/6/1997 9:57:00 AM
From: Art Stone   of 13594
 
AOL doesn't want to be in the network business.

That's my conclusion. AOL doesn't have the cash to buildout AOLNet, and sees no potential for profitability in it. It finally has dawned on AOL that the Internet is the free highway to get the customers in the door.

One of the persistant questions people have debated over the past two years is "Is AOL an ISP?". On the media.aol.com page, they firmly answer this question now - AOL is a "media company".

I expect AOL now to make a major push to educate their customers on how to get off the AOLNet modems and use an ISP. AOL will, however, need to continue to develop the kind of "content" that will keep around the $9.95/month members and keep the ad revenues flowing.

It ain't the old economic model any more.
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