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Technology Stocks : Internet Analysis - Discussion

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To: Steve Robinett who wrote (175)	2/14/1999 11:47:00 AM
From: MaryinRed	Read Replies (1) of 419

Yes....they do have some upside...on subscriber fees...there is some apparent elasticity there.....but I doubt if they will go that route...but they 'can"...lots of way to get more subscriber fees actually...beyond raising the $, (cutting the number of nicknames down to 2 for example, added fees for special features...."pay per view" kind of options... but I doubt this is the way...to go... And we are in agreement...on the increased $ am't to advertisers/partners... they are raising the stakes.... I emailed a list of just some of the partners...and the fees they paid to "get in"...and those are the "lucky partners" who were sharp enough to buy in early.....partners...will pay more..they are breaking the door down...to pay more...! The more time...a consumer stays on line...the more advertisers will pay.....(demonstrates loyalty...and more time to see ads... etc.) that is why they "tout" the time spent from 30 min avg to over 40 min now.... The incremental cost of additional time...(particularly as they more more and more people to BYOA (thus no phone/modem infrastructure expense for AOL) until they reach....capacity again.. is possibly moot... think...how much it costs to have an empty hotel room... an empty plane seat...... if the capacity is there....may as well use it to have eyeballs to view...and get ad revenues.... the game at the moment...in all the Internet ...is "Get BIG"...as fast as possible.... because the ad $ will follow....the biggness... that is why....places like Amazon...are not profitable....too busy ...spending to "get big" smiles...mary

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