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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Roger who wrote (31499)	9/24/1999 5:41:00 PM
From: Jim Lamb	Read Replies (1) \| Respond to of 41369

The MSFT thread is fixated on Balmers statements while the huge story is that they will increase rates on MSN by 2 dollars. This news is game set and match for AOL. A quick read here on cost of ISP's. <<By contrast, Mr. Oakes is more bullish on the AOL model. By his analysis, AOL pays roughly 40 cents an hour per user in telecommunications costs. Since the average AOL user stays online 27 hours a month, AOL spends about $10.80 a month to keep each user online. AOL says it generates about $4.50 a month per user in advertising, commerce and other non-subscription-fee revenue; that would lead to a loss of $6.30 a month for every user if AOL didn't charge them monthly access fees. And that doesn't count the money AOL spends on customer support, marketing and other items.>>