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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Michaelth1 who wrote (24887)	8/23/2000 10:23:09 PM
From: gpowell	Read Replies (2) \| Respond to of 29970

Yes, I gave you the text book description of competition within an industry, it seemed appropriate given your Webster’s definition. You are mightily confused about competition. What is occurring between narrowband and broadband is not competition. It is simply a conversion process. Do you really think that once converted a consumer will go back to narrowband? The “Competition” you imagine between AOL and ATHM is simply the switching cost of changing ISP’s and the cost differential between narrowband and broadband. ATHM can eliminate both of these by allowing consumers to choose their own ISP and by lowering the cost of the service. Strangely enough, ATHM’s most successful advertising campaigns were the “keep your AOL account and we’ll pay for it” and the low introductory pricing strategies. In fact, these campaigns were so successful that the MSOs instructed ATHM to back off on these ads since they could not keep up with demand. This is a sure sign that AOL and ATHM are complementary services. Tell me how AOL and ATHM are not complementary services. I use both AT&T@Home and AOL. I can fire up AOL’s browser and never even know or care that I am using ATHM’s network.