Monday, August 15, 2005

It's DSL for AOL Customers


As more and more dial-up internet access customers defect to Broadband high speed internet access, perhaps the biggest loser has been the internet giant AOL. But, don't expect this behemoth to just roll over and play dead. Even as AOL customers defect to DSL and Cable Internet Service in mass, the one time darling of ISP's is struggling to reinvent herself.

Elinor Mills at CNET remarks, "To many analysts, the move is a no-brainer. AOL's subscriber list has dropped from more than 26 million in March 2002 to 21.7 million this year, largely because AOL's dial-up customers are defecting to broadband. Subscription revenue declined by $116 million between 2003 and 2004, but ad sales increased $220 million, helping total revenue increase $100 million to $8.7 billion."

In an effort to retain the ad dollars in the face of declining subscription rates, AOL will open it's for members only content to everyone without charge.