>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?<
Brain, I very much value your input, because, although I am no fan of AOL, bears have to understand that many AOL'ers are delighted with the service. Just the fact that we are on SI, creates a selection bias, since if we liked AOL enough, we would be chatting on Motley Fool. So, we are not a representative sample (you, nothwithstanding). However, I must call into question some of the three points above.
1) As you correctly point out, AOL has a diversified revenue model, but not one that works.
2) IMO, ad revenue is a pipe dream unless AOL can develop the three C's. Content, Content, Content. Even then, how much advertisers will pay to place ads that people can skip over is debateable. The online audience is not a passive audience as in TV, although MSN is trying to create content that makes the audience more passive. However, I do like the ability of advertisers to be able to better target ads on AOL and other web "channels."
3) No disagreement. IMO, it is the only things that gives them tangible value in the marketplace. This should put a downside on the stock, that is as long as these members can be retained. |
