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


To: The Duke who wrote (9537)4/16/1998 10:49:00 AM
From: rhet0ric  Read Replies (2) | Respond to of 13594
 
IMO that report shows quite clearly that member usage is growing about twice as fast as the actual number of members. i dont see that as a positive

It's a negative in terms of the strain on the network and modem banks etc., which will increase infrastructure costs, but it's a big positive in terms of ad revenues and PR. The more times each user views each ad, the more money the advertiser pays to AOL.

Gaining 1 million subscribers between Jan and Mar is pretty significant given that AOL hiked fees (though they take effect Apr 1) and cut back on marketing during that time. Whatever negative effects might arise from those moves will be delayed till next quarter's results, it would seem. So unless the market melts down, AOL can keep spinning positive PR for another three months at least. Scary.

rhet0ric



To: The Duke who wrote (9537)4/17/1998 7:39:00 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 13594
 

IMO that report shows quite clearly that member usage is growing about twice as fast as
the actual number of members. i dont see that as a positive


Neither do I. I see it as a negative when comes to the costs equation.

Glenn