Word: premiums
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...this adds up to a grim reality: until AOL can offer easy access to premium content such as movies and music on demand, not enough customers will pay even the $55 a month it charges today for its broadband service. Those who do--the early adopters--are actually cutting into AOL profits. Every time one of its dial-up customers shifts to broadband, the AOL service goes from a nearly 40% profit margin to one potentially as low as 10%--mainly because it has to share broadband revenue with cable partners...
Johnson said that as a “consolation prize” the group looked into installing HBO and other premium cable channels in House common rooms. But AT&T Broadband, Cambridge’s cable provider, will not install HBO in a space available to more than just a single family, according to Johnson...
...legislation to clamp down on the accounting business is on the tip of Washington's tongue. The new Wall Street scrutiny just might reinvigorate a market for boring bean counters in green eyeshades - and make it possible for a tightly focused company like the new Andersen to charge a premium for unassailability...
...uncertainty, and the Middle East these days is certainly loaded with that. The worst-case scenario - an all-out war - could be devastating to the oil-dependent global economy, whether from an embargo or merely a disruption of supply. Merely by worrying about this investors are putting a premium on energy prices that could make their other nightmare - a weakling recovery, stunted by inflation and starved for demand - come true in the meantime...
Like a lot of Samsung's new devices, these combine cutting-edge technology with award-winning design - at premium prices. That's something new for a company that only a few years ago was known as a mass marketer of cheap TVs and VCRS - the kind you bought off a shipping pallet if you couldn't afford a Sony or Mitsubishi. Since 1997, however, Samsung has begun rubbing shoulders with the market leaders in high-end cell phones, DVD players, elegant flat plasma TVs and a wide range of other consumer products. These gadgets are sometimes less expensive than those...