Skip to main content

AOL Offers Broadband to Declining Base

Dow Jones reports that Time Warner Inc. AOL unit will begin offering high-speed Internet access service as it attempts to retain its rapidly deteriorating base of dial-up customers.

While it was recently considered an online advertising and traffic darling by Internet giants Google Inc., Yahoo Inc. and Microsoft Corp., AOL continues to lose customers and revenue in its core dial-up Internet access business. The move to offer a high-speed product via cable and telecommunication partners illustrates its willingness to play some defense.

In early February, the Internet service provider will offer AOL High Speed - a package bundling broadband Internet from the likes of BellSouth Corp. or Verizon Communications with AOL features such as security and exclusive videos. In doing so, it hopes to retain control of its customers as more migrate to a faster connection. AOL had 20.1 million U.S. members at the end of the third quarter, down 678,000 from the second quarter.

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the