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

To: Jing Qian who wrote (5858)	3/1/1999 7:25:00 PM
From: Mkilloran	Read Replies (2) \| Respond to of 29970

Jinq....give away the razor and people will buy the razor blades from you.. At some point in the future @Home can make more off of advertizing and reduce the price of the internet service...that will attract more customers, etc..that gets them more ad revenue, etc. This leads to a theory that if you give it away you will have close to 100% population using the service. TV stations have used a model like this forever, Newspapers sell at less than cost and make more off the ad revenue, etc. Of course this also works for AOL....just look at when they charged by the hour vrs one charge for unlimited access for the month...they have many more customers today at the flat fee. They could have more if it was only $9.99 a month, etc.. The future will still draw customers to high speed internet services for the expanded features that will go with the faster speed. ATHM will just grow faster as the pricing model changes to attract more customers over the next few years.

To: Jing Qian who wrote (5858)	3/1/1999 8:43:00 PM
From: E. Davies	Read Replies (1) \| Respond to of 29970

@Home can't afford to give it for free. Obviously not right now. But if you expect @home to survive only on subscription fees I suggest you pull out a calculator and see what the maximum possible revenue stream is based on monthly fees only. Its decent revenue, but not really enough IMO to justify ATHM's current stock price. Dont forget most of the fees go to the MSO's. But I wonder why Tom Jermoluk even said that. What is his motive in saying that? If he really give it away, he will immediately cause the company a great deal of risk Maybe just because he honest and wants to let people know where things are going. Personally I was very cheered to hear it. People are much more likely to sign up now knowing that the goal is to have future prices drop than rise. I should know this I suppose, but I dont: Does ATHM get all the advertising revenue or do they share that with the MSO's too? Eric