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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (49299)	9/14/2000 2:08:58 PM
From: ThomasG	Respond to of 74651

Retention rates will probably be good because consumers are basically slow to change from one provider to another, especially if their email address is xxx@msn.com. This discourages them even more from switching. Msn is the same price as AOL or most of the other pay services and is certainly no worse than them, so there should not be any reason for them to want to quite. Just look at bank accounts consumers dont change banks because of the hassle , even though they can get better rates elsewhere.

To: Charles Tutt who wrote (49299)	9/14/2000 2:15:34 PM
From: Dave	Respond to of 74651

< Aren't the $400 rebates essentially paying "customers" to subscribe to MSN? What happens when they come up for renewal? Will retention rates be high enough to justify the gambit? > It's better than MSFT's WebTV model, where MSFT pays the hardware licensees for each unit sold, with the hope that they will make it up in subscription fees, but then they lose money on the service too. Worse yet is the satellite box that contains WebTV hardware, where MSFT pays the box maker per unit, and then the majority of customers don't even sign up for the WebTV service! (Would you? Do you really want to upload a complete history of your viewing habits to MSFT's database?)