<< But I just don't see what AOL offers a consumer that isn't cheaper and easier to use elsewhere. I don't buy the content arguement because there's more of it on the net and the net in general is becoming more secure every day. What is the value propositin to the customer? Anyone?>>
Your Majesty:
The Value proposition, in my opinion:
1. It's partly the Content, but only because that content is neatly arranged and consistently delivered from a central screen area that is easily learned and navigated...and you still have the web accessible when desired.
2. It's partly the Scope. The volume of postings and the depth of the message boards. (this is a blessing and a curse, BTW)
3. It's mostly the Community. This intangible element that Case keeps talking about is real. It comes from Chat, Buddy List and Instant Message features. Had a three or four way chat with your family members across the city/state/country/world? It happens daily on AOL. Don't want to? Turn off the feature.
4. It's a little bit that guy that says "You've Got Mail!" He's so happy for me, that I can't help but be excited to....
None of the above features are locked in by AOL. MSN can do them, and may yet do them better. AT&T and the other copper/fiber owners may do cheaper, but not much better, IMO. And the cable sharks have dull teeth. They have big-time capital raising problems of their own.
Meanwhile, AOL is developing the add-on revenue streams that will permit them to compete effectively. None of these alternative revenue streams have to be enough to carry profitability alone. They are cumulative: Vendor ads, Member classified/personal ads, Commissions on online purchases, Website hosting services, Corporate Intranets, Fees from their online service providers....
Yes, access limitations are today's headlines. But bandwidth will be made available.
What other Internet Access Provider has:
1. ...a more diversified revenue model?
2. ...the ability to make it on ads alone?
3. ...a bigger market share of online users?
My answer to all the above is Nobody.
Can AOL translate these advantages into gushing profits that send the stock price northward? Maybe....I have seen no other vehicle to ride that looks better to me. Therefore I am....
long....and patient....and occasionally having to redial several times to get online.
BrianCOG@aol.com |
