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

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To: Art Stone who wrote (1066)1/15/1997 5:56:00 PM
From: Harry Larson   of 13594
 
Presumably a company with AOL's supposed savvy would have gauged in advance impact of flat rate by testing it on a sample of subs.
They test all sorts of marketing approaches. Why not this?

And stuff like the below may come back to haunt at trial or elsewhere. Suggests gross insensitivity, and if not foreknowledge, perhaps
at least attitude of not being concerned about the possiblity of
massive overload. Discovery in these cases could be interesting.......

12/18/96 On-Line Users Attracted by Low Rates
Strain System, Causing Frustration
----
Wall Street Journal
"People like to go to crowded places," said Robert
Pittman, chief executive and president of AOL's main business,
AOL Networks. "I don't worry about [customer defections] because
I know about consumer behavior," Mr. Pittman said, drawing a
parallel between waiting on-line and waiting-on line -- at a
theme park.

12/20/96 Customer Surge Slows AOL Service
Online Busy Signals Met With Frustration
Washington Post
Part of AOL's coping strategy is a new online column that gives tips
on avoiding the traffic jams.
.............
in AOL's defense, Meg replied that consumers also wait for rides at
amusement parks, lifts at ski resorts and a turn on the exercise equipment at a crowded health club.

At least at a theme park, ski resort, or health club when you pay entrance fee you get inside -- and have visual ques about the queues.
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