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Technology Stocks : America On-Line: will it survive ...?
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To: jack rand who wrote (1440)2/4/1997 5:01:00 PM
From: John Howell   of 13594
 
Bob Pittman in todays Knight-Ridder article has joined Case in the "People will Believe Anything Club". Here are two bits that include quotes from Pittman.

) Pittman provided figures to indicate that under both the old and new pricing structures AOL collects, on average, about $12.50 per month, per subscriber, above its cost of providing on-line access.
"We should make money from subscriptions alone" said Pittman.

) "we have put our marketing machine on idle at this point, but we should still see an increase to 10 million subscribers by years end".

This goes way beyond any credible business model. I know a little about the ISP business and there is no way in hell, even if you owned all of the infrastructure and had no 800 access numbers that you had to pay for that you can squeeze $12.50 from a $19.95 unlimited access plan.

AOL ads are still running hot and heavy in my area.

With earnings due out any day I'm expecting AOL to announce that "people want us to post large losses because it represents a commitment to the internet infrastructure"

or how about

"people don't mind unauthorized credit card charges because they know we are really trying our best to let them in our theme park; really, they love us; they really do"

or

"we're giving away one months free access to the AOL customer who writes the best essay on the topic 'I love AOL and I've got the sore asshole to prove it'".
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