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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Jorge who wrote (4401)	2/4/1999 10:49:00 PM
From: Vendit™	Respond to of 41369

I believe that was trumped with this..... America Online Rolls In More Cash -------------------------------------------------------------------------------- America Online announced a marketing pact with First USA today worth up to $500 million over 5 years. This represents the latest in a series of marketing agreements that continue to increase in price. What do these marketing agreements mean for the online giant? Primarily, their long term strategy to find profits from marketing and cover costs with access charges is working. This strategy means that AOL can forget about future changes in means of access and focus on building usage. America Online is becoming the ultimate broadcast network. For 48 minutes a day they have a lock on 15 million AOL account holders, representing over 40 million screen names. The ICQ service has 11 million active users, who typically use the service for over an hour at a time. These are the ultimate portals! Unlike other portals that can only count on a few moments of usage each day, AOL's two major services get uninterrupted usage. That's why the strategy works. This is cable on steroids. With cable companies trading at around $3000 a subscriber with low growth, it is reasonable to expect AOL to trade at $4000 a subscriber. Based on 25 million subs AOL merits a valuation of $100 billion. That's $218.25 a share, making AOL still look like a bargain. --------------------------------

To: Jorge who wrote (4401)	2/4/1999 10:52:00 PM
From: Vendit™	Read Replies (1) \| Respond to of 41369

$500 million in additional advertising revenues for AOL from USA Visa..........has anyone tabulated that on a pre share basis (earnings)?

To: Jorge who wrote (4401)	2/5/1999 9:21:00 AM
From: Tumbleweed	Read Replies (1) \| Respond to of 41369

Re: Has AOL Met It's Waterloo? ALthough the free ISPs in the UK are really taking off that model wont replicate to the US unless basic telephone charging changes. In the UK, local calls are not free, and the ISP gets their money by taking a cut of these calls. So, although you see the headline 'free' you are still paying call charges, which works out at somewhere in the region of 1.2c or thereabouts per minute. The free element is the subscription. If you subscribed to AOL in the UK you'd pay the same 1.2C/min plus a monthly subscription of about $25. Presumably if the other ISPs can make a profit on this model in the UK, then I suppose AOL could also. I dont see how that could work in the US, I assume you pay a monthly fee but no call charges? Joe