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AOL Subscribers Finding Greener Pastures
Mitch writes "The Register is reporting that America Online has lost close to 2 million customers since September 2003. At the end of September they had 22.7 million customers in the US which was down more than 500,000 since the beginning of the quarter. This news comes one day after it was announced that more than 700 jobs would be cut from Virginia offices by the end of this year."
sending out those free coasters, they'd save some money and not have to fire staff.
Maybe they should stop focusing on "Making the internet better" and make it less cumbersome for their users. Each version is so much worse than the last. And why are they still using IE at the core when they own the development of the world's best browser???
Sound waves should be free!
People would rather pay $50 and have broadband than close to $30 and have dial up. While you can use AOL over broadband, what's the point?
Reason, free market capitalism, and individualism
Middle management's first and only answer to each new day in business: fire hundreds of people, preferably by entire departments.
Of course, AOL is still making over $400 million a month in subscriber revenue, but it's always better to have mass layoffs, as every middle manager knows. Fire 'em all. Layoffs by the hundreds. Destroyed careers. Destroyed credit. Savings lost. Years of effort flushed down a shitpipe. Who the fuck cares? The business must maintain their earnings and 20% annual growth.
Disney fired 4000 people between nine-figure summer movie releases, then destroyed an entire animation studio, firing 250 with unique abilities and experience. Walt Disney was very proud of the fact most of his employees had worked for Disney their entire careers. Now, the company can't wait to fire people every quarter. It's the way of business.
This isn't capitalism. It's budgeting by layoffs.
Careers are meaningless. Everyone is a temp. W-4 employment is a farce.
Business isn't willing to pay for products, innovation and careers, so we get brands, mortgage commercials and layoffs.
Netzero has been doing some very effective advertising for about a year. AOL did nothing, no changes in service, no advertising, no competitive rates, etc.
Now, AOL just started advertising, claiming value added services.
They're still going nowhere, at the end of the day the average consumer cares nothing about services, they want a cheaper price.
AOLs only alternative that I can see is to purchase netzero, but don't migrate their userbase. Continue to be netzero, and if you loose customers from AOL, BFD. You'll be getting less profit per customer, but at least you'll still the the recurring revenue.
Don't get me wrong, I'd love to see AOL crash and burn, but they _do_ have a niche.
To see a world in a grain of sand, and then to step back and see the beach where the sand lies
For many AOL users AOL _is_ the internet. As more become educated they relealize they have been duped by clever marketing. When friends demonstrate broadband technolgies which, remarkably, access the "AOL" internet with freedom and speed they wake up.
People are being forced to learn how to operate their computer because of all these viruses challenging their intellect. Thus they don't need their AOL training wheels anymore.
The stupid ones are quitting AOL as well, because they stopped using their computers because it's too much work for them.
Finally we may be able to get those dam AOL disks out of the Post Office!!!
AOL is like the Disneyland of the internet. Everything is clean and there are signs everywhere. Everything also costs more. Lots of people can't handle it in the real world, so they stay in Disneyland.
-B
This is the burning question... And not only that, AOLs prices have gone UP over the past 5 years. Unlike every other dialup service that has started offering lower rates and lower usage plans; AOL unlimited accounts have jumped 3-5 bucks in price for the same (or worse) crap.
When I worked for a local ISP in 99, we had AOLers switching to us to save money (us 17.95, AOL 21.95). Now I have AOL customers coming in our shop saying they're paying 24.95 for dialup!!
WTH is that? In some places, you could get cable for 10 bucks more. And most DSL providers have plans under $30 that are screaming fast compared to AOL.
Why do they stay with AOL???
No unauthorized use. Trespassers will be shot. Survivors will be shot again.
Why do the remaining 20 million stay?
/. but I've found one thing:
Because it is easy.
I used to scoff at AOL users like everyone else here on
AOL keeps people from calling me.
I'm sure everyone knows what it is like to become the local "support geek". I used to get teased for being a geek and now people can't stop calling me. But I have found that AOL users call me less. So I encourage AOL usage - especially for people with children.
Certainly it isn't perfect, but it does say a lot when someone gets broadband and then ditches AOL only to renew their subscription because of how easy it is. I see this a *lot*.
As a side note, AOL would be wiped out if someone came up with a broadband modem that implemented a really good content filtering. Something like Dan's Guardian in a small, user friendly box that had easy bypass controls for adults. I do realize that most off-the-shelf routers will do primitive keywork content filtering but this could be improved upon.
Maybe AOL should get into the router/firewall business? To date, nobody has made this technology easy for Joe and Jane Six Pack to use.
Life is the leading cause of death in America.
They're all moving over to their local cable and telephone companies. Which have even lower security than AOL. Expect more worms, viruses, and general whackiness than when AOL was between them and the Wild Wild Net
Best Slashdot Co
Many AOL "customers" aren't actually customers at all, but rather, people who think AOL=Internet, MS-Word and Windows are the same thing, and that their monitor is 'the computer' while the computer case is 'the hard drive'. AOL isn't losing actual customers, they're losing people who washed up there because they clicked on something when they booted their BestBuy PC for the first time. These people are simply moving to Broadband, or any one of the $6/month ISPs, or DSL, or something else.
I want to delete my account but Slashdot doesn't allow it.
Well, I will tell you why one customer stays. My grandfather has been with AOL for years. He hates it: the buggy software crashes on him regularly, connection is not especially reliable, etc.
Unfortunately, he is the author of a lot of articles in journals in his field and is well known in this field. This means that his email address is published a *lot*. Leaving AOL would necessitate the huge hassle of changing and updating his email address.
And then, of course, he is also 72 years old and not especially computer adept. He *does* want to leave AOL, but for better or worse he knows how to use the program. We've talked about DSL, but the extra speed matters little to him.
Basically, he stays with AOL because it is easier for him than the alternative.
Kind of funny. Kind of elitist.
I think that the average user is getting more EDUCATED, not more intelligent. Lemme give you an example. Today at work, we receive approximately 27,000 metric tons of information about changes to our health care plan. I consider myself relatively intelligent, with a good amount of education. However, the volumes of information are not in my realm of expertise. The HR folks seem to think we should be able to absorb all this information and make an intelligent choice for our families within two weeks.
For someone who is absorbed in this stuff, this is probably very straightforward. To someone who is in the tech field, understanding service providers, and "what the internet is" is relatively trivial.
The danger becomes that or profession looks down on the majority of folks who don't have a clue. It isn't because they are stooopid. It is because the mechaniscs of the computer world does not interest them. Our job is to serve those folks, help them to make better choices, make it EASIER to make those choices.
Overall, I think we've done well, but then there are posts like this, which I HOPE are the minority.
If we all had the same gifts, this wold be a boring world.
See my journal for slashdot ID's by year. Mine created in 2005. http://slashdot.org/journal/289875/slashdot-ids-by-year
For me, the best ISP is the one I notice the least. Basically, I want a reliable pipe to the internet, for as little cost as possible. Nothing more and nothing less.
The Tao of math: The numbers you can count are not the real numbers.
For the same reason you keep paying for the services of your current bank, even though the employees are clueless and the fees are stupid. Regardless of how much better things would be with a better service provider, it's too much hassle to switch.
Yes thats all I want too, but AOL isnt aimed at the /. crowd. As someone said before, AOL is aimed at Joe and Jane Sixpack, who are too afraid of what lurks on the wire or to clueless too know any better. And frankly, thoes kinds of users need something like AOL to help them take their baby steps onto the web.
Am I the only one that cringes when I see stuff like AOSmell, Internet Exploder, Microsux, Windoze, etc. ? I may not like these products, but these words completely and utterly lack any hint of even a remote sense of any form of humor.
!hoD
One of my friends has a good term for it. "fake fun" Prepackaged, tightly controlled, limited entertainment.
Crushing my karma one post at a time.
I just love how they have advertisements on the most expensive "premium" online service. That, along with their network difficulties, ran me off of their service back in 1997. Good thing these people don't run HBO or Cinemax, I bet they would have ads in the middle of the movies.
Uh huh...tell me that again when I get back from fixing my friend's sister's machine that she claims she never mucks with but things mysteriously stop working anyways. In fact, I'm getting ready to leave soon for her place. The day I start getting paid $40 an hour for putting up with this bullshit is the day I stop looking down at these people. Until then, it's my right, and pretty much my only payment...
and they won't let you. Here's a fun story.
I finally convinced my wife to drop AOL last year when we were in a bit of a money crunch. They would not accept our cancellation instructions and made it very difficult to leave. Rather than change my credit card number to get rid of them, I decided I would make it advantageous for them to drop me.
I created a screen name called CacaPooPoo (I forgot the exact name, but it wasn't far from this) and went a trolling. Trolled long and hard, far and wide. I went into religious chat rooms and spewed forth such vile language that Penisbird would be ashamed. Of course they threatened to report me - I sneered at them and went on my merry way into the next chat room. Merriment ensued.
A solid hour after starting this, I finally got booted off with a message on the screen to call them at 800-xxx-xxx to discuss my behavior. Intrigued, I called and spoke to an Indian woman in their abuse department. I mentioned that I was booted off and wasn't sure why. She explained to me that a screen name called BigCacaPooPoo was reported as spamming repeatedly in all caps "I WANT TO GREASE YOUR MOUTH UP WITH MY POO!" in Christian Chat 87. I let her know that I was indeed aware of this behavior and that I was trying to get the account cancelled. I said those exact words. She replied that they would consider this a warning and reactivate the account. I mentioned that even though I was trying to get it cancelled and was aware of the behavior (seeing as it was me that did it), did I understand her correctly that I was being reactivated? Yup, she said. Thanking her for her time and good efforts, I went back at it and trolled with renewed vigor. Along with this I found a message in my mailbox from a specific TOS person or whatever they call it, advising me that further offenses would not be tolerated. I replied to him with 4 pages of "F*** YOU" c/p'ed over and over and some ASCII art of goatsee.
Alas, my time was marked at that point. Ten minutes later I was booted off of AOL with a message stating that my account was cancelled. Success! I had accomplished my seemingly simple goal and have a bit of fun doing it. Juvenile? Of course. However, look deep inside yourselves and ask the kid in you if you wouldn't have done the same thing. You are offered too few chances in life to act like a bull in a china shop with the result that you wanted in the first place. Seize the chance! Troll now, have some fun and save yourself $14.95 in the bargain!
"As the intrepid kobold companion continues his journey, he begins to wonder... if priests raises dead, why anybody die?
On topic: Having an AOL account means that you don't know anyone who understands computers. As the number of people who know a little expands, AOL will eventually dry up and disappear. I think it's obvious Steve Case knew that, and that's why he wanted Time Warner's involvement, and engineered the "merger" at the top of the bubble.
Responding to your sig: They think the violent, chronic liar is Christian! But he's an alcoholic. Alcoholics often have both a very engaging side and a violent side. Usually they try to hide the violent side. Most people can't tell he's lying!
There's a similarity between being a supporter of George W. Bush and being an AOL account holder. Both show ignorance, only that. AOL is not, in fact, giving its subscribers anything they should want, and Bush is not, in fact, giving the "Christians" anything they should want. And, anyone who is so easily led to violence is definitely not a Christian.
As the U.S. has grown, the intelligent, ambitious people have left the rural areas and gone to places that offer more opportunity. That's why the blue states are in the areas of opportunity and the red states are in the middle. Probably AOL users have a similar demographic.
which makes Disney World different from Doom 3, the movie "Saw," NASCAR or Pro Wrestling how, exactly?
Actually, Pixar is distributing one more movie through Disney. It will be called "Cars."
AOL and similar services (Compuserve) were built around a model of access designed to take advantage of a new, emerging technology; ie dial-up internet for us ordinary folk. In the early 90's, they were the cutting edge; they made it easy for the ordinary person to get online, plain and simple. How could this not be popular? And it was.
Broadband and other providers are now beginning to eat at AOL's US marketshare (lack of new subscribers figures prominently), and for some reason, people (perhaps including the Time-Warner/AOL people) are surprised.
Where is AOL strong? The USA and the UK. Both have similar (in a broad sense) market realities; in the US it's the slow rollout of broadband due to structural reasons while in the UK it's the network's structure itself (expensive phone charges, often including tolls for local calls, and monopoly providers of broadband, who coincidentally have a financial interest in keeping you on dialup).
Now, Compuserve and AOL were big competitors in Canada at the beginning; then AOL bought Compuserve and quit offering it to new customers, although technically it still exists, sort of. Roll the clock back to 1995.
For a mature product category, it's a standard marketing given that a firm can expect to get business in Canada roughly equal to 10% of it's US business. At first, it looked like that with AOL/Compuserve in the US and Canada.
Then came broadband, and lots of competition. Storefront providers began showing up in my town around then, to the point where I could get access from dozens of dialup ISPs, some of which had as little as a few hundred customers. The local University offered it's network access at home for 10 bucks a month to employees and students.
As well, Cable and telephone companies began to get in (they lagged the mom-and-pop providers, getting serious towards the end of the decade). The local teleco had already rebuilt province-wide with fibre optic cable, completing it's network in the early 80's.
I had AOL for about 3 months in 1995 (you know, free with the computer). Then, I switched to broadband (CableModem) when it was introduced in my city. February 1996. A few months later DSL was offered (my local teleco was the first full-scale launch in N America, if you lived in the 2 largest cities 80% of the residential area had it available at launch). See "structural reasons", above.
Now, I don't live in some techno-heaven; I live in a city of less than 200K in a rural area; draw a circle 100 miles in radius around city hall and you get 260K, not 500. But, no regularory/right-of-way issues. Rollout is quick. Today (2004), if you live within 10 miles of a town of 800 people or more, anywhere in the province, you can get DSL.
Virtually all Canadian internet users came on after the introduction of broadband, not before. These customers don't know anything about AOL, and signed up with the broadband provider itself.
So, around 1998, after being firstest on the block, AOL was around number 8 in Canada (subscriber numbers). By 2000 they don't even register in the top 20. AOL/Compuserve never got past 1 million subscribers and have some fraction of that now.
We know AOL is quite familiar with this history; a lot of it is their history. So, here are the questions they should have asked themselves:
Why didn't we get our 10%? We should have had around 3 million in Canada. Never even got to 1/3 of that.
What can we do to combat broadband? Content? Pricing? Added Value? What? What is it our competition offers that's so attractive and how can we offer something that competes?
Since we had this little micro-model showing us the future, what did we do to use this info to combat market forces in the US, where we still have a leg to stand on?
What do you mean, "we did nothing"?
Personally, I think I would have switched to some variation of the @home model and made my service integral with a broadband provider. AOL would still be getting checks and new subscribers. Now that @home has failed and providers know how easy it is to do it themselves, even this model is now doomed.