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CEO Calls For AOL Paradigm Shift

Posted by ryuzaki0 on from the johnsmith12102343823-email-address-still-available dept.

An anonymous reader writes "The New York Times is reporting that Jonathan Miller, AOL's chief executive, is calling for the effective dismantling of marketing for their dialup service. In a new plan to be presented to the Time Warner board in a couple of weeks, Miller outlines a new direction for AOL which moves towards using advertising as the main source of revenue while offering most everything they have (software, AOL.com email addresses, etc) for free."

3 of 149 comments (clear)

  1. This makes absolutely no sense by Fubar411 · · Score: 4, Insightful

    FTFA: Under the new plan, almost everything AOL offers -- its content, software and AOL.com e-mail addresses -- will be available to any Web user free.

    Even my mother who has had broadband for only a year now knows user@aol.com == newbie. She knows better than to pay attention to mails from there declaring "Important, new email virus alert!!!" as these people are still wet behind the ears.

    Given the number of CDs AOL has sent out, and the negative response to their bloated dial-up software, I don't think people will be scrambling to aol.com to get their hands on the latest.

    So why would anyone go to AOL.com? The article leaves me unconvinced. About the only thing I can agree with is the CEO's statement about it is going to get worse (before it gets better, but there is no guarntee of that)

  2. Paradigm Shift? by Dryanta · · Score: 5, Insightful

    More like refocusing on what actually makes AOL profitable. We knew this was coming when we saw AOL ad-words on superbowl commercials, and REALLY knew it was coming with the 10% Google aquisition. Can you really blame them for no longer competing in the sub $25/month dialup when FIMUX and muni wi-fi networks easily bring in close to 2X that per month for broadband after taking out TCO?

  3. Wait A Sec... by somethinghollow · · Score: 4, Insightful

    They are just now relying on ads as their main source of revenue? Back when I used AOL, their ads were pervasive to the point of being annoying. Everyone I know that uses AIM thinks the number of ads are annoying.

    So, what they are saying is that it will only get more annoying as they bump off dial-up. Great plan, AOL.

    If AOL wanted to swap from service revenue to an ad revenue, they shouldn't have been shoving as many ads down people's throats before the switch.