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Technology Stocks : AUTOHOME, Inc
ATHM 22.15-2.0%Jan 9 9:30 AM EST
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To: Jing Qian who wrote (5858)3/1/1999 7:25:00 PM
From: Mkilloran  Read Replies (2) of 29970
 
Jinq....give away the razor and people will buy the razor blades from you..

At some point in the future @Home can make more off of advertizing and reduce the price of the internet service...that will attract more customers, etc..that gets them more ad revenue, etc.

This leads to a theory that if you give it away you will have close to 100% population using the service.

TV stations have used a model like this forever, Newspapers sell at less than cost and make more off the ad revenue, etc.

Of course this also works for AOL....just look at when they charged by the hour vrs one charge for unlimited access for the month...they have many more customers today at the flat fee. They could have more
if it was only $9.99 a month, etc..

The future will still draw customers to high speed internet services
for the expanded features that will go with the faster speed.

ATHM will just grow faster as the pricing model changes to attract more customers over the next few years.
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