AOL For Free?

by admin July 7, 2006 at 3:57 am

AOL is reportedly considering offering its online services for free to some of its users.

After years of watching subscribers depart at an ever-increasing rate, AOL is considering dropping the subscription business model and re-focusing on advertising revenue, the Wall Street Journal reported today, citing people familiar with the matter.

AOL CEO Jonathan Miller presented the proposal to parent company Time Warner’s executives in New York last week.

AOL refused to comment on the report.

In the plan, AOL would stop charging subscription fees for its services to broadband users or those who dial-up using another ISP.

The hope would be that users would take AOL up on its offer and use its portal services enough to lure advertisers into making up the lost revenue.

It’s perhaps not so surprising a move from a company such as Time Warner, which has long depended on advertising in its publishing business.

AOL has already been losing subscribers for years now. Lately the rate has only been increasing. In March, AOL reported 18.6 million subscribers, down from a 26.7 million in 2002.

Full article: