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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (30164)	12/22/1999 11:33:00 AM
From: tony	Respond to of 50167

OT No Negative. Enjoy free ride as long as it lasts.

To: Investor2 who wrote (30164)	12/22/1999 11:44:00 AM
From: MeDroogies	Respond to of 50167

There are no real drawbacks if you don't mind clicking on an ad every 20 minutes or so...or you don't mind the barrage of ads across your screen. I use one as a backup to my cable access. Makes sense. When cable's down, I want phone access. Anyway, these models will all be out of business in a few years time. Here's why: You sign up 1 mm people and need to recoup a lost $15 per person. That is $15 mm per month. So you sell ads. To recoup that level of income, you have to sell at a $1500 cost per thousand. Since the average cost per thousand is closer to $25 in most media, you'd have to sell 60 ads per person. Assuming you've got ads on for 30 secs, you really won't get more than $2 cost per thousand. That mean you need to show at least 720 ads per person. That is totally within the realm of possibility, but considering low sellout levels on the internet, they'd have to stream about 2,800 ads per month per person to make up their lost income. I don't see that happening. Besides, free ISPs are reasonable in Europe, where you pay per call fees. In the US we have flat rate local....so paying extra for an ISP isn't a big deal. It isn't so much different than paying for cable when you can get broadcast for free.