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Technology Stocks : AUTOHOME, Inc
ATHM 23.14+0.6%Jan 23 9:30 AM EST

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To: Frank A. Coluccio who wrote (7682)4/11/1999 5:26:00 PM
From: FR1  Read Replies (1) of 29970
 
No More Free Ride for Web Communities.

I'm not sure I can agree with this. Yhoo has enormous chat rooms and they are all free. Basically, they set them up and just let them run. You can argue that a lot of garbage is presented there (because there is no one to control content) but it is still worth going to and you can click past the garbage.

Look at it this way - computers are becoming a TV on steroids. You can select your program, get it instantly, and interact with it.

It costs hundreds of thousands (sometimes millions) to produce a half hour TV show that everyone sees for free. The advertisers will pay the bucks if they have the eyeballs. I think what is happening is that ads are more targeted (only show the widget ad when the show or conversation involves widgets). The ads cost less but there are more of them. Also, the force is with the internet (compare internet growth to TV growth). Respected ad rating services are beginning to become involved in the internet and the audience is growing rapidly.

Who knows where it will wind up. I think the model of a free service supported by highly targeted ads will win out. If I had to pay even $5 for every site I wanted to visit and participate in, I would be bankrupt in a month. I think most people surf the web and stop at places that are fee and have content they are interested in. They skip the pay sites for the reason above.
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