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To: Rascal who wrote (16828)	11/7/1999 3:15:00 PM
From: E. Davies	Respond to of 29970

You are correct that the key to the whole mess is advertising/e-commerce. I didnt know AOL made more from that than subscription revenues. AOL does have a truely unique setup in which users are allowing themselves to be bombarded with advertising. Quite amazing since it is possible to turn it off. This is something that AOL can bring that ATHM (even with Excite) cannot reproduce, because ATHM insists on not controlling the user. To date this has been the sticking point: AOL has desired simply to pay $x/month to @home for access to the pipes. @home has wanted a % of the ad and e-commerce revenues. Until Case realizes that @home is valuable enough to be a partner in the process rather than just a pipe no deal will be done. Any deal would have to give ATHM more ad/e-commerce revenue from being an AOL "partner" than they are capable of earning themselves from the people who would choose to stay in the Excite world. Possible? Maybe. Eric

To: Rascal who wrote (16828)	11/7/1999 10:30:00 PM
From: ayahuasca	Read Replies (2) \| Respond to of 29970

I think the numbers are off a bit- AOl is hitting all growth and profit targets now with clunky old dial-up and the street seems to be pleased. AOL makes money on each customer 3 ways: Subscriptions,advertising and e-commerce. Annually.. AOL makes $20.00 per subscriber. 20 million subscribers X $20.00 each = $400 million a year. actually it is $22 per subscriber per month not per year. So 20 million subs x $22/each x 12 months= $4.8 billion a year or $240/yr/sub Last quarter AOL made $350 million in advertising/ecommerce on 20 million customers who were on AOL about an hour a day. Annually..$350million X 4 quarters = $1.4 billion a year divided by 20 million subscribers = $70.00 a year per subscriber. So AOL subscribers throw off revenue of $90.00 a year each by staying on AOL about an hour a day. this would be $310/sub/yr. same would go for the numbers used to assess ATHM.