Fatal Vector
join:2005-11-26
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Their mindset is that you are not just paying for basic dialup internet service (which they offer through Netscape). You are also paying for the content that comes with the dialup (no matter if you use it or not, just like the bundles from the telcos). This has been their basic business model for a long time and is also what made them successfull.
Now, however, you have widely available broadband and this, coupled with losses in customer base (much of which is caused by festering problems in the service and AOL's long time unwillingness/inability to deal with them) that, if they are even half awake, they can no longer afford to ignore, they are being forced to do something about.
This business about raising the price of the dialup is typical AOL. Besides, in the adverts they run here, their broadband is "STARTING as low as $25.95".
I'm sure part of it is typical AOL arrogance, thinking that the suckers will stay with them no matter what and they can still rake in the cash, while the rest will migrate to broadband, hopefully with their co branded package, which is, of course, conveniently packaged for the convenience of Joe and Jane box of rocks.
I'm sure they think that, at least this way, they will keep some of them no matter what. Not that Time Warner isn't one of the greediest and most arrogant corporations in the world to begin with, of course. |
