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

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To: Brian K Crawford who wrote (1124)1/20/1997 1:25:00 AM
From: Todd Daniels   of 13594
 
>Meanwhile, AOL added 1.2 million, net of churn, in the last quarter,
>500,000 in December alone.

250-500K of those were Compuserve subs bolting after CIS didn't
match $19.95. And probably another 100-200K were on freebie month
given when they called to cancel. Then there's other trial subs,
who now can't log in.

>But IMO we will see 10 million paying subscribers on AOL by
>December 31,1997.

From where? The rate of growth of the installed base of home
PCs is now at 4% and should stay that way at least thru 1997.

IMO AOL growth in 1997 will at best will be no greater, and
could even be flat to down.

Speaking of which, what about the poor souls who do brokerage and banking via AOL? What about the banks, brokers and merchants who thought they could rely upon AOL as conduit for their services?
What about `AOL Enterprise' which sells `private' AOLs to companies
(except use the same access numbers as the regular AOL service)?
What about the advertisers who don't want to be associated with
AOL's mess?

AOL 'aint gonna skate away from this one. And what with AOL's
history of scrapes, the question now will be "what's next?"
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