David
UPDATE:
Okay,
it seems AOL has finally done something right! As of
September, they have made most of their services ABSOLUTELY FREE!
To
me, this is a crazy maneuver, but hey, if it makes them
happy...
I
guess they were getting far too many complaints (Did YOU complain,
as I suggested above?) about having too many ads on a service that
people were paying for. Maybe we all had an effect on them.
Whatever,
AOL has decided to go to an AD-SUPPORTED revenue model.
All
of a sudden, I don't mind all their ads any more. When I was
paying over $23 a month for their service, it incensed me no end
to have to watch their ads. I mean, how many customers does AOL
have, anyway? 25 million? 30 million? Many of them were paying the
outlandish $25 a month, and many were paying less.
If
we say that on average, their customers were paying $10 a month (I
bet it was lots more!), then AOL's average MONTHLY revenue would
have been $250 million. That's $250,000,000 a month. That's an
annual gross revenue of $3 billion -- "Billion" with a
"B". I don't care HOW big your business is, or how many
employees you have, a monthly income in that range ought to make
ANY business the roaring image of success.
So
it puzzles me why they would move away from that and into the
advertisement-supported model as they have... unless ... Unless
they can make MORE money from ads than they did from
subscriptions.
There's
always the possibility that they wanted to downsize, to cut back,
to reduce the number of employess (I can't imagine that), and so
were quite willing to downsize their income.
Not
being privy to the inner workings and accounting practices of AOL
(who bought Time-Warner, remember), I imagine it's not for me to
say why they did what they did.
But
I'm GLAD they did!
THANK
YOU AOL!
The
way I understand it (and if someone knows more accurately than I
do, please let me know and I'll set it straight here), AOL service
is free if you bring your own internet connection. If you need to
use AOL for dial-up, then you still have to pay. Is that right?
Ubiquitous
dial-up access is the main reason I signed up with AOL in the
first place. I traveled a lot, and I needed to send and receive
emails wherever I went. There were only two places I went that I
couldn't get a local AOL number. Of course, with multiple screen
names, I gave one to each of my kids, one to my father and one to
my mother-in-law, and that became their email address that
everyone knew, so I was pretty much locked in.
And
when things really started getting irritating, I couldn't get out
without a major hassle for my relatives.
But
now, with every decent hotel offering internet access, and the decent
ones offering it as free wireless in the rooms, I don't need
dial-up access any more.
So
this move by AOL was a very good thing for me. And, I hope it was
for you also.
So
there we have it.
Suddenly,
everything that was so infuriating about AOL when we were paying
for it, is now not so bad now that the service is free.
Don't
you agree?