Re: UKNM: the absurd economics of the net

[Deborah Loth]

Last week Bill Thompson wrote:

>This week's Economist has a number of pieces about the overvaluation

>of net stocks - worth reading - but they also point out the way

>the industry  is going by imagining a company called "dollar.com" that

>sells dollar bills for 90 cents and then makes money from selling

>ads and impressions.

>

>What frightens me most is that I can't see anything wrong

>with the model... is it just me?


And this week's Wall Street Journal reports that a California company plans

to distribute free computers to people who agree to use them for at least

10 hours per month, to share personal data about themselves and to be

exposed to Internet advertising. (Hazardous...) The company founder thinks

that it will work because Web customers are now valued at about $1,000 in

potential advertising and transaction fees over several years, or more than

the price of a PC.


A viable business plan for BT's revenge on Dixons? Pay-for Internet access,

but the computer is free... Or are those consumers, like net stocks,

overvalued?


D.

--------------------------

Deborah Loth

deborahoddjob [dot] co [dot] uk

mob +44 (410) 352 896

tel +44 (171) 439 4399

fax +44 (171) 437 8505

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