Vendit, AT LEAST WE AGREE THAT AOL SHOULD MAKE AS MANY PARTNERS AS
POSSIBLE IN ALL CHANNELS but not own them out right.
Yes, I have all the 'toys' you described plus more, but we must admit
that the majority of PC user's income is not above $100,000, that is
why the sub $600, sub $400 PC grow carzily, because there are people who wants PC for their kids but cannot afford it, there are people who wants internet but cannot afford it.
By the way, I just made a trip to CompuUSA, they are selling CPQ
with 350 MHZ/4.2G/32 RAM/56 k box for $599!
If I pay $399 for a PC and you ask me to pay $480/year for internet
connection, I should think hard before making commitment. If I
am paying $40 for cable now, am I going to pay $40 more for
internet connection? I should think hard before I commit it.
I believe AOL's strategy is quite correct, aim the mass audience, aim
the middle and lower income family for eyeballs, provide
high-end connection to satisfy the upper income families, with a
powerful market share, AOL can bargain a lower access fee from
DSL/CABLE/WIRELESS operators and resell the usage to their members
and in turn increase AOL's bottom line.
Most middle and lower income families tend to glue on the screens long time because they don't have extra money for other recreation hobbies,
but as they spend more time on screens, AOL can claim that
statistics for more ad $ and/or sell something to someone when
he or she got curious enough...
At the distant future, AOL will become a utility company, all the pies
have been distributed, ISP/portals can only do more services, at that
time maybe AOL should go buy telephone companies, wireless companies
TV stations, etc., but I believe I will be moving on way before
that day arrives.
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