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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (6391)	3/23/1999 5:37:00 AM
From: B. A. Marlow	Read Replies (3) \| Respond to of 17679

A few thoughts on BCST and AXC, Carl. First, the now-inevitable acquisition of BCST is significant in many ways. BCST is the last of six (SEEK, NSCP, XCIT, LCOS, GNET) primary portals to be acquired and the only multimedia portal in the group. As I've said elsewhere, BCST should go out at a value of at least $5B, which works out to about $150 per share. If you're looking at fundamentals for guidance, forget it. It's all about eyeballs. BCST's in the traffic business. It draws more than 850,000 unique visitors per day; when it reports March quarter results, the number should easily exceed 1mm visitors. This is the metric that YHOO and AOL are after. The point is that, while any content provider can broadcast on the Net, it's entirely possible nobody will come to visit. BCST knows how to bring in visitors, and this is why it's valuable. What's more, the nature of its business is one of "increasing returns." Visitors beget more visitors. Not sure that TVW's model offers an easy way to generate huge traffic to a particular event. It's running a sponsored content aggregation business, not a movie theatre. Its mandate is to build slowly but progressively. Think the solution is to install links on important Web sites (just like the link on RNWK's new streaming media site), and establish strategic alliances with important third parties (everyone from AMZN to ZD in the Net space, plus the confederacy of each content area) who can throw off traffic. Finally, the channels themselves offer a terrific opportunity to spread the gospel. Each one has a constituency, and each can be merchandised to maximize traffic. While a blizzard of PR is critical, cost (throwing money at the wall) is not really an issue as (with apologies to the Beatles) "money can't buy me love." BAM .