Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Keith J who wrote (7869)	2/14/1998 11:09:00 AM
From: sam	Respond to of 13594

Dropping CPM rates? I guess they don't make much from ad revenues anyway. According to the analysts, the key for AOL is to keep its customer base. But the purpose of a customer base is to create a market for ad revenues. Or is the customer base vital for the $22 a month per subscriber? Somewhat old fashioned and simplistic, but it seems like the division between cable television and broadcasting. AOL (and the ISPs for that matter) is going the way of cable, while YAHOO, EXCITE and LCOS are going the way of the broadcasters. Microsoft is playing it the smartest -- covering all the bases. Its already an ISP and it has made major investments in Comcast (for the cable route) and LCOS through CMG. Soon, however, the model will change dramatically. It always has, always will. The analysts think that AOL will be at the forefront of the change. I'm not so sure about that. I think AOL has done a fine job of accumulating its customer base, but they can't just sit around on those laurels for too long. Too many others are gunning for them now. For some reason, AOL reminds me of Blockbuster Video at about the time that Wayne sold out. Is it just me?