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

To: Moose who wrote (3659)	12/30/1998 5:49:00 PM
From: Moose	Respond to of 29970

Just read an article re: mergers. IDC seems to think more Portal/Network mergers will happen. Who am I to argue? news.com In fairness, here's an article which suggests my KISS theory is wrong. Look at the second to last paragraph. news.com

To: Moose who wrote (3659)	12/30/1998 6:12:00 PM
From: Stuart C Hall	Read Replies (2) \| Respond to of 29970

Moose, We're going to agree to disagree but I feel obligated to go one more round. ;-) Your point re: open standards is becoming more and more moot as the new users expect more and better features in a single purchase Ease of use is AOL's greatest strength and biggest weakness. I feel that as these new users who expected more become seasoned users who expect everything and know they aren't getting it from AOL then AOL's NSCP decision will seem less valuable. Broadband will change the internet and AOL could get stuck in the slow lane. However, you have a very good point that with 15 Million subscribers AOL has plenty of time to make other arrangements. See previous thread posts regarding xDSL. Maybe a joint move with TWX is possible? I believe the NSCP purchase provides: 1) A great co-branding (don't underestimate the value of the following 7 letters "Netscape"), 2) Technology and expertise to build a premier portal, and 3) The browser/portal - a pair of tools to keep the new 1M subscribers from switching to ELNK, MSPG, etc. RE: 1) In 12 months Netscape will become Netwho?. Witness Alta Vista. Alta Vista has become a scientist's search engine just as Netcenter will be the interface for AOL. I don't see it creating new AOL customers. Brands are now created overnight. The Internet has changed the rules. AOL would have been better off going the Toyota/Lexus - Honda/Acura - Nissan/Infiniti route. Introducing a whole new brand that is affiliated with AOL would have been more successful than merging with a known entity. Now they have expended all of this money to inherit a struggling company rather than boldly establishing a new and exciting brand that can make a statement on it's own. Make it broadband and call it AOL@Home. The price justification is already established by cable subscribers paying $40/month. The DCX merger is possibly the exception to the rule. 2) YHOO has 60% of the market. Pull up YHOO and Netcenter and tell me the difference. Why is YHOO in danger of losing any of their market share to such an obvious knock off? NSCP came late to the party and has been shut out just as Amazon has succeeded in shutting out BarnesandNoble by purchasing every book related keyword on all search engines. Going through the learning cycle creates positive feedback. The faster a company learns, the more customers it wins and the more customers it earns the faster it learns. YHOO is a mighty steep hill for NSCP to climb. (disclaimer: I do not own any YHOO) 3) Browser/Portal tools to keep customers? I think YHOO wins again in that it has the most to offer. It's easier to change portals than it is to install a new driver for your mouse. I don't see the hurdle for the customer. My argument comes down to one question: How is AOL going to support a broadband world over telephone lines? You are right that with 15 Million subscribers they have some time to figure it out. However, is NSCP the diversion they really need now? I bet AOL screws up big time. Regards, Stuart