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Non-Tech : E*Trade (NYSE:ET)
ET 16.72+0.9%3:59 PM EST

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To: Oeconomicus who wrote (5223)2/17/1999 9:33:00 AM
From: j_b  Read Replies (1) of 13953
 
<<if an ISP that two years ago was valued at $300 per sub is now worth $1200 per sub, will it be worth $4800 per sub two years hence?>>

It might be. When the service started, the only revenue stream was the monthly subscription price. That expanded to include ad revenues. Additional revenue streams evolved from e-commerce and marketing tie-ins. If AOL can continue to add revenue streams that have a relationship to eyeballs, the per subscriber value will continue to increase. To carry that to a ridiculous extreme (and this would go for E*Trade in their field as well), there could come a time when everything you purchase is online, and AOL gets a piece of every sale. With the demographic information they have, that could result in a very large value to the actual producers or sellers of those goods.
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