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Unformatted text preview: 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. e 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. t 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