AOL Planning Move to Ad-Supported Model

garzpacho writes "In recognition of the fact that its subscriber-based revenues continue to plummet, AOL is planning to shift to an ad-supported business model. AOL's subscriber base, which peaked at 30 million users, now has less than 19 million subscribers and is still dropping — over 800,000 subscribers dropped the service in this year's first quarter alone. In addition to seeing fewer AOL CDs, a shift to ad revenue also means some serious cuts in staff size, especially in the customer service and retention departments. From the article: 'Time Warner plans to announce a series of changes at AOL that analysts say will mark the end of the company's paid-subscriber model. The company will begin relying on advertising sales rather than monthly fees paid by customers, according to the Wall Street Journal. 'I don't know whether advertising will work, but my thinking is (the changes) are basically an acceptance of what is happening,' says Joseph Bonner, a media and telecommunications analyst at Argus Research. 'This is a reflection of reality, that they have to find some other source of revenue.''"

Comments

Re:For Whom the Bell Tolls

[The Cisco Kid]

Quite frankly the whole concept of using some specific portal or search engine page as ones 'homepage' is completely moronic, IMNSHO. My browser opens to a blank screen, and then I either type in or select from bookmarks what site I need to see. Why does everyone think the Internet needs some sort of 'main menu'? There isnt one, and there never will be - get over it.

As far as dialup, it isnt going anywhere soon (Telco and Cableco have very little interest to serve rural areas), but there are *far* better options than AOL. (And neither Earthlink or PeoplePC count)

Give it up already.

[Stumbles]

AOL is like a dumb animal that has not realized it's head has been cut off and still prances around. AOL has ALWAYS sucked, they HAD their day in the sum and should just lay down and die.