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

To: Pruguy who wrote (32154)	10/3/1999 11:24:00 AM
From: Steve Robinett	Read Replies (1) \| Respond to of 41369

--Pruguy Your original comment was that They (CompuServe)use the AOL infrastructure, so additional compuserve customers doesn't mean additional cost. It flows to the bottom line. That hundreds of thousands of new subscribers can be added without additional cost is nonsense. With that large a number of additional subscribers, there are additional network expenses and additional customer support expenses. Pittman may have said CompuServe hitchhiked on AOL's network. I'm sure he didn't say that that was free and that the $10.83 CompuServe realizes after the $400 36-month rebate "flows to the bottom line." It probably barely covers costs. You may be right that CompuServe is being positioned at AOL's "plain wrap" brand. Nevertheless, the rebate strategy is aimed at gaining market share now and making money later. Best, --Steve