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Unformatted text preview: there will be decrease in earnings. Another reason for this pricing move is part of a broader effort to add new features to the service and make it more compelling than rivals. Since America Online's price is lower people will tend to use America Online more. This is a competitive market as America Online lowers their price, other competitors will lower their price too. This will happen until they reach the Equilibrium. By staying in this fast-moving industry, America Online has unveiled a set of features that include enhancements to listening to audio on-line, better methods for viewing video on-line, and tools for media companies to spruce up their on-line fare. In Addition to that America Online also expected to unveil another initiative whereby Internet-service providers could offer their subscribers easy access to America Online in return for ad revenue....
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This note was uploaded on 10/06/2010 for the course MKT MKT501 taught by Professor Lin during the Spring '10 term at University of Management and Technology.
- Spring '10