[JA] Juno Breaking Even
- From: Jim Henderson <jim.henderson@xxxxxxxx>
- To: juno_accmail@xxxxxxxxxxxxx
- Date: Fri, 28 Sep 2001 17:22:13 -0400
Two companies that look like sinking stones have tied themselves
together, perhaps on the theory that one big stone will float better.
> Subject: [JA] Re: Juno and NetZero Complete the Merger
> From: George H Lunt <glunt@xxxxxxxx>
> > NetZero has incurred net losses of approximately $312.4
> > million from its inception in July 1997 through June 30, 2001,
> > including a net loss of approximately $42.1 million in the three
> > months ended June 30, 2001. Juno has incurred net losses of
> > approximately $291.6 million from its inception in June 1995
> > through June 30, 2001, including a net loss of approximately
> > $2.6 million in the three months ended June 30, 2001.
GHL> One of the more interesting aspects of the "merger" (purchase
> of Juno by NetZero) is the timing. After all this time and effort and
> huge, huge losses Juno is on the verge of becoming profitable.
Is on the verge? On what evidence do you say that? You quote the report
that says the company lost almost a million dollars per month in April,
May and June. Do you have more recent information, saying the losses
dwindled to something smaller in July, August and September? Are you
predicting a profit for some particular future month? It's a pleasant
notion, but what reason is there to believe it to be true? I am unaware
of a reliable report that connection costs will drop quickly, or that ad
prices will go back to the high levels of a year or two ago.
The main hope I see is, Juno's pleasant software will persuade many
thousands of NZ free riders to pay $10/month to escape the 10 hour limit.
Secondary hope, NZ's patented software can increase ad revenue a bit,
without driving away too many of the ones who are attracted by Juno's
software. Together they offer a hope that, to me, seems very slim.
Day before yesterday, I helped a long time Juno free rider to become a
paid customer on his new family Web account. There were some minor
difficulties, but we got it done. I assume his early-teen daughter is
happy now, though she would be happier if he had decided to spend more
than twice the money for AOL.
This is the third time I helped a user get through that transition, while
continuing to ride free myself. I don't know anyone who succeeded in
becoming a paid Juno user without my help. Most free Juno users who are
being cut off don't understand that they have hit a time limit and can
get lots of online hours if they pay. No official letter explains it to
them. They just assume free service is too good to be true, hence Juno
is not useful to them, so they must quit Juno and pay AOL.
Nice software, at least for the ignorant, though sophisticated users may
prefer POP3 compatible readers. A more important problem is, Juno does
not make clear why, how, and how much a free rider should pay. Instead
there are all these misleading and confusing special price and "free
gift" ads popping up. Clarity would sell better, but the company prefers
flash which flies over the head of great numbers of potential customers.
AOL's price is ridiculously high, but it is clear and simple.
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