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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 595 |
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The amortization period was developed from AOL's experience and was chosen to more accurately match revenues with expenses and, as such, is justified.
Given the changes in the industry beginning in 1995, AOL should take a closer look at its policy of capitalizing subscriber acquisition costs. The introduction of MSN as a competitor may result in some subscribers switching services from AOL to MSN, resulting in a reduction of subscription length and revenues...
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The introduction of MSN as a competitor may result in some subscribers switching services from AOL to MSN, resulting in a reduction of subscription length and revenues. The introduction of the World Wide Web as a substitute could also result in a reduction to current and future subscribers. After reviewing the uncertainties of the online services industry in the near future, AOL should decrease the amortization period for the subscriber acquisition costs...
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