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AOL Desktops On New PCs

mickeyreznor writes: "I came across this interesting article in the Washington Post. Apparently AOL is trying to pull the same kind of stunts that got Microsoft in trouble with the DOJ. I'm not sure where I stand on this whole issue, but it seems to be a very interesting situation. Seems like we're going to have an all-out corporate war in the upcoming months." With news that the number of internet users is shrinking, AOL needs a way to bring in new subscribers -- and the DOJ's pressure on Microsoft appears to have opened a door.

23 of 220 comments (clear)

  1. Thoughts, part 1 of 1 by jd · · Score: 3
    First, how does anybody know the number of Internet users is shrinking? The numbers used are all just plucked out of thin air, so all that's being done is that they're comparing one random number with another random number.

    If the argument is that the world economy has been kicked in the teeth (GWB wouldn't know anything about that, would he?), and that the Internet is a luxury, compared to food, then yes, I'll agree that the global Internet usage is probably slipping, right now.

    However, AOL aren't selling to the global Internet population. They're not even selling to all major cities in the United States! If you don't sell, then nobody can buy. Blaming the customer may appease a few board members, but it won't pay the bills.

    If AOL are going to pull hostile take-overs of the Internet community, they're going to wind up dead in the water. For a start, how do you attack something or someone you know nothing about? At least Microsoft picked their targets with some degree of skill.

    Besides, AOL's best solution is obvious to me. Even if the global Internet usage plummets, the big corporate players will still be there. And that means, a need for high-speed backbones. AOL covers a fair number of countries. If they were to build their own backbone, they would be less vulnerable if an existing major player went under, they'd have an extra revenue stream, and it would cut their long-term costs massively.

    (Lucent's just about dead, which means that terabit switches and optical routers are more likely to end up in the Smithsonian than in companies' networks. Further, anything they have already sold is likely to end up unsupported.)

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    It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
  2. Quick question by banky · · Score: 3

    From the article: "New York based AOL..."

    That's odd... what's that big-ass building down the street from me (Dulles)? Is AOL no longer based on NoVA as a result of the merger?

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  3. I'm sure MS has an ace up their sleeve by glh · · Score: 4

    Two words:

    DR DOS

    I can see blue screens happening every time that popup comes along ... ;)

  4. There ARE alternatives... :) by Mike+Schiraldi · · Score: 3

    During the antitrust trial, MS kept saying, "We don't have a monopoly! There are alternatives! You can use a Mac! You can use Linux! You can use BeOS! And we didn't preclude Netscape from having a distribution channel! You could have downloaded it, or got it from CompUSA!"

    I for one hope AOL gets every single major OEM to put AOL products all over the default installation, and then says to MS, "What? They can always download MSN. They can always download Windows Media Player."

    Or paraphrase MS's excuse from Windows Refund Day: "Sure, most major OEMs will bundle AOL, but you don't have to use a major OEM. Just use some fly-by-night mail-order distributor if you don't want AOL bundled with your computer."

    Sure, i hate AOL as much as the next guy, but the delight of seeing MS get a taste of their own medicine is worth it.

  5. Windows Distributions by Mike+Schiraldi · · Score: 5

    It's high time OEMs stopped passing Windows to the consumer verbatim as it comes from Microsoft. Each OEM should put together their own Windows "distro". Just like we have Redhat Linux and Debian Linux, there should be Dell Windows XP and Gateway Windows XP.

    The OEMs should look at products and choose what to bundle. If Dell decides Mozilla is better than IE, they should pull off IE and put on Mozilla.

    That way, MS can't destroy a competitor just by bundling a moderately good imitation.

    Think back to the bundling of, say, HyperTerminal. It sucked, but nobody would bother to go out and find a good replacement when something adequate comes with the system. But if Dell had had the balls to say, "Screw that, we're including FooComm in our Windows distribution, it's better" then HyperTerminal would have faced competition and would be better today.

  6. Re:Not at all... by trcooper · · Score: 3
    utilities are something that the government has extensive experience in and a history of regulating.

    Yes, utilities are one of the very few things that work well in a socialistic fashion. Gov't regulated or owned utilities have worked terribly well. However AOL/TW isn't a utility. You must understand that AOL/TW isn't just AOL anymore. It's the largest mixed media company in the world. What they control or have an extensive interest in is mindboggling.

    Sure, MS can control the PC OS, and even the office application market. But that's a miniscule niche to what AOL/TW controls.

    Microsoft can rely on threats while AOL has to offer sweeteners

    In the business world the difference between a threat and sweetener is negligiable. If your competitor is keeping back 35$ more than you a unit it effects your bottom line. You have to counter that by taking the offer too, whether you want to or not. The EXACT same reason PC makers had to agree to MS's demands. AOL is simply taking advantage of the current situation, because MS can't counter because of PR backlash (See AOL's holdings in CNN, CNN/fn etc).

    Choose your evils. Myself, I hate to see any company go unchallenged. MS at least had some challengers, no matter how small, But AOL/TW has none. Go without MS for a month, no problem. Now try to go without AOL/TW, good luck, hopefully you're blind, deaf and dumb and live in a very remote cave.

  7. The insidious thing is... by ShieldWolf · · Score: 4

    That this product is using a new trend in UI design I like to call 'nagups'. These are pop-ups that the user sees X number of time before they go away. The problem is that users don't KNOW that they will go away after '5 times or one month whichever is first' as the article states. They assume, as any reasonable person would, that the pop-up will keep coming up until they register with AOL. This will do one of two things, encourage users to move to AOL, or, encourage them to complain to their OEM and AOL.

    Microsoft is using the same technique with passport: the prompt to register comes up three times before disappearing (IIRC) after installing XP. Microsoft claims that passport registration is NOT required with the OS, however a reasonable user would believe after the second time that the nag popped up, that registering with passport is necessary to get rid of it.

    How is this helping users? Nags should come up once and then have the ability to dismiss them forever or remind later (just like outlook appointments).

    By including such measures AOL and MSFT are doing a disservice to their end users.

    -Shieldwolf.

    --
    just = (My)Opinion.toCents();
  8. Battle of the Titans by mr100percent · · Score: 3

    Aren't you worried that AOL/TW and MS are fighting to be king of the hill? Both are battling to control our lives, take away mp3s, etc.

    Once one gets the upper hand of the other, then we're going downhill. Once MS is finally emasculated (by the DOJ? AOL?), AOL/TW will be the new hated corporation around here.

    1. Re:Battle of the Titans by szcx · · Score: 5

      That's exactly what is going on. Take the Senator Seeks Injunction Against WinXP article from Tuesday... folks here were pretty quick to congratulate the senator on "getting it" and attacking Microsoft. But the fact is the only thing he "got" was bought for $52,000 by AOL/Time-Warner.

  9. My favorite comment... by Hollins · · Score: 5
    "AOL's actions are unprecedented and completely anti-consumer," said Microsoft spokesman Vivek Varma. "AOL is paying [computer makers] to eliminate consumer choice, forcing people to select the most expensive service in the industry."

    classic

  10. Re:This is not the same as what MS did/does by donutello · · Score: 3

    They penalized manufacturers who did not put Windows on the PCs they sold ... AOL is striking deals where they would pay the manufacturers

    Bzzzzt!! Wrong!

    There is no difference between Microsoft's "penalties" and what AOL is doing here. The price for the OS was always $89. For OEMs that played along with MS, MS offered a huge discount to that price. OEMs that didn't do this didn't get the discount and were hence "penalized". What AOL is doing is the same here. They're offering money and OEMs that don't take it are "penalized" because their computers cost more compared to their competitors who do.

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    Mmmm.. Donuts
  11. It's called "competition" by artemis67 · · Score: 4
    The main difference is that AOL doesn't have the power to force computer manufacturers to to this by threatening to withhold the OS; rather, they are enticing them by offering $35 for each new user they nab. Microsoft, Earthlink, or any other ISP is free to make similar deals and offer more money for users. Or the manufacturer is free to reject all offers out-of-hand and do as he pleases.

    Ah, good old American capitalism at work...

  12. We're being bombarded! by SpookComix · · Score: 4
    In internal AOL documents, the media giant lays out a strategy that calls on manufacturers to build into their new personal computers icons, pop-up notices and other consumer messages aimed at pushing aside Microsoft by giving AOL's products prominent placement on PCs.

    Jesus! We're being bombarded by ads enough as it is. It's not enough that every morning I see ads on TV and hear them in my car. During my drives around town, I see hundreds of billboards, signs, and flyers designed to attract my attention. When I'm on the Internet, I'm pounded by pop-ups and banner ads. Now, AOL wants to slap computer users in the face before they even get on the Internet!

    As a result of that Microsoft concession, AOL's strategy for Windows XP now focuses on the "OOBE process," or the out-of-box experience, the crucial moment when consumers turn on their machines for the first time and select what products and services they intend to use, the documents show.

    The average OOBE will soon be "Wow. I remember back when there was a *desktop* that people could see icons that related to the programs they bought. Now, it looks like we've bought one damned expensive commercial-generator."

    --SC

    --
    You read fiction? I write it! Lemme know what you th
  13. Another internal AOL "wishlist" by SpookComix · · Score: 4
    It's disturbing, but it reads as follows:

    Other ways to ensure a profitable "Out Of the Box Experience" for AOL:

    1. Removal of one of the customer's fingers each week that the customer fails to accept "the trial".
    2. Promised hold times of "only three hours" if the customer wishes to cancel his or her subscription after "the trial".
    3. Forced sex with the customer's spouse and/or children until the customer agrees to "the trial".
    4. Regular visits by a naked Steve Case to the customer's home or office until the customer accepts "the trial".
    5. The AOL icon will be present on the customer's desktop in three forms. Each time the customer tries to delete one of them, one of the customer's most recent documents will be deleted, and a pop-up message will warn that if the customer doesn't try "the trial" within the first 30 days of ownership, his family will be killed one by one in reverse order of birth.
    Shocking.

    --
    You read fiction? I write it! Lemme know what you th
  14. 2 problems with this new approach by sowalsky · · Score: 4

    There are two issues (that I see) with this new approach, but neither deals with the fact that AOL/Time Warner is becoming a mega-media giant.

    1. They are doing this at the OEM level, not the OS level. Obviously, MS has made it clear that they are no longer bundling ISP setup files with Windows anymore, unless DOJ forces them to. This won't be an issue with companies like Compaq, that only send a recovery CD with the product --- they don't support consumer/non-factory-installed versions of the OS. But with most other PC companies, a full-featured version of the OS will come along side the machine on a specially marked CD. This will restore the machine to the way Microsoft likes it, so if the person later decides to sign up for AOL, the pc-maker won't get credit. Changing this policy of including OS CD's might hurt the PC company's relationship with Microsoft.
    2. They are trying to capitalize on Microsoft's "tenuous" situation. Did it ever occur to AOL that the entire internet economy is in a tenuous situation, where money from ISP signups/referrals is becoming less and less available? What about if popularity for AOL gets hit, possibly by another weekend outage or something? The PC makers will realize they were just being toyed at by AOL, angry at their current MS business relationships, and very upset that the current position of PC makers in the market right now is NOT what hardware they provide, but the level of user freedom that comes with the package.

    Oh yeah, and to touch on Compaq again, I really think their idea of keeping their computers as an overall package of software, hardware, support, etc. is an awful idea. They tried that on me with a laptop I bought from them. I recently dissuaded the purchase of $200,000 of computer equipment from Compaq because of their inflexibility. What a pleasure it was putting a full-featured, factory-provided version of Win2K (without all the company crap) in a brand-new Dell machine, reformatting/reinstalling, and have it still be fully supported!

  15. Can we say horrible journalism? by Lord+Ender · · Score: 3
    The poster says, "With news that the number of internet users is shrinking."

    But this is completely and utterly a lie! The article he links to clearly states that the number of internt users is increasing, this is simply happening at a slower rate than last year.

    Geeze. It makes me sick.

    --
    A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
  16. Similarly ... by Rosco+P.+Coltrane · · Score: 3

    Now that Microsoft is careful about not being (too) obvious with their monopolistic methods, maybe they'd allow RedHat to put a "Install Linux" icon on the Windows desktop :-)

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
  17. Not at all... by update() · · Score: 5
    Apparently AOL is trying to pull the same kind of stunts that got Microsoft in trouble with the DOJ.

    1) What got Microsoft into trouble wasn't what they did but that they did it with a monopoly position. AOL hardly has a monopoly and can therefore legally do all sorts of things that would be illegal for Microsoft.
    2) Anyway, I don't see where there's much similarity between Microsoft threatening to raise Windows prices to prohibitive levels for computer makers who don't do what they want and AOL offering bonuses to makers who deliver users to them.

    To give this some perspective, Dell, Compaq and the rest are paying catalog owners and stores to give their products good placement -- and they're paying bonuses to salesmen who successfully move their boxes. (Apple doesn't pay those bonuses, which is why CompUSA salesmen are so reluctant to sell you a Mac even when you go in and demand one.)

    Unsettling MOTD at my ISP.

  18. Mainstream media seems to be missing the point by hillct · · Score: 3
    Mainstream media outlets just don't get it. The Post article says:
    Microsoft said on July 11 that it would give computer makers more flexibility in placing icons on the desktop -- the valuable real estate consumers see first when they turn on their machines.
    This was discussed earlier on /. but, most important here is the point that microsoft really isn't giving up anything. Microsoft has moved from advertising services on the desktop (limited reale-state) to advertising services within applications and the OS as a whole (un-limited real-estate). This is not only a much more insideous form of advertising, has the potential to provide redidual revenue on a per user bases greater than the initial sale of the OS to that user. AOL is equally targeting these methods of promoting teir services in my reading of the proposal. This point seems to be glossed over in the article.

    --CTH
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    --Got Lists? | Top 95 Star Wars Line
  19. Out of the box, out of the ashes... by dasmegabyte · · Score: 3

    People tend to use whatever is on their computer when they unpack it and stick it onto their card table.

    This is the saddest thing I have ever heard -- I got a free DVD with my player and I never even considered watching it. What is it about computers that leads people to beleive that they come pre-ordained to do whatever you want them to?

    I think it has to do with the amount of crap we hand people with a new computer. It's overwhelming. Instead of, "here's a box, a 35 page manual, and you're good," it's "here's a box, your monitor box, your cables and printer and mouse and keybouard an a set of For Dummies books on the OS, the browser, setting up internet, using software, scratching your ass and solving world hunger." We give them so much shit to learn...doesn't it make sense that they don't have time to absorb it all, and make all the pertinant decisions? When you buy a TV, you know how to use it...channel up, channel down, volume controls. Computers just don't have that level of ease of use...programs don't have any uniformity or really intuitive user interface that is common among them, and this is one area where Open Source just isn't helping (read the report Sun did of new users on Gnome...you'll realise why you need evils like project managers and marketeers to make a pervasive OS).

    Maybe, rather than handing them all the software at once and burying them, we should go back to the old Commodore method of software sales. You get a PC with an OS, it does basically nothing. Learn that. Then we'll hand you your web browser, and when you need it your word processor. If this was how software was received, maybe there'd be time to choose which provider and package you wanted based on informed input. But software is rush, rush, rush...people want everything now, because that's what we've sold them. When you do that, you're openning the door for cruddy software and $35 kickbacks. It's a bit like beer vendors at a baseball game. I'd love to have open competition, with the choice to choose whatever beer I liked for a competitive price. But to prevent a lot of "confusion," the stadium offers a license to only one beer man, who offers a choice of piss yellow beer or piss yellow light beer, each for an abyssmal price. I drink it because it's there and don't really enjoy it. Software on a new PC is the same...you use it because that's what you got, and don't really get to know there's better stuff out there.

    --
    Hey freaks: now you're ju
  20. Re:When are they going to learn... by tb3 · · Score: 3
    Yeah, but they're going to have keep clicking the 'Cancel" button.

    on-screen 'Pop-ups' that will appear five times within the first month of activity(or until the user signs up for AOL, whichever comes first).

    Peachy. Beat them into submission. I bet Microsoft is kicking themselves for not having thought of it first.

    --

    www.lucernesys.comHorizon: Calendar-based personal finance

  21. number of internet users.. shrinking?! by dunkerz · · Score: 3

    Numbers of log-ons and connections is probably declining because more people are using broadband, meaning permanent connections, and the number of dialup connections is going down. This means people are settling with their broadband isp, and forgetting about the multitude of dialups that they used to use to get a decent connection, and also to see which dialup connection suited them best.

    Come on, just how likely is it that the number of people getting net access is going down? Well, maybe because the majority now have connections, thus a slowdown in the number of new isp registrations. Seems logical enough, don't you think?

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  22. ::Uncontrollable laughter fit:: by Nihilanth · · Score: 4

    From the article:

    "'AOL's actions are unprecidented and completely anti-consumer' said Microsoft Spokesman Vivek Varma."

    ::falls off chair laughing::

    It's sad to see that big business revolves around the "idiot factor", that is, trying to influence the decisions of the idiots that will use whatever the "Out of Box Experience" dictates they should use.

    Business is based on efficiency. Since successful business must be efficient, we can use this trend as proof that most computer users are, in fact, idiots. It's a sad thing.

    As for the AOL thing, i use AOL myself just because ive had the same email adress since I was in 7th grade (8 years ago). I use AOL merely as an email client, and use my cable service provider for the actual internet connectivity. This makes AOL service MUCH cheaper (especially when you pay for blocks of years, which my parents do). When you remove the ISP factor out of AOL service, its actually quite good, i would just rather chew aluminum than rely on AOL for my actual internet connection.