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AOL Raises Dial-Up Prices
Seriously.
by Karl Bode 05:09PM Monday Jun 30 2008 Tipped by FFH5 See Profile
What do you do when your company once ruled the Internet, but years of incompetence and an inability to adapt to a changing market results in tens of millions of customers defecting? If you're AOL, you apparently raise prices. AOL is informing dial-up customers that as of July 27, they'll be raising the price of dial-up service from $9.99 to $11.99 per month. "This plan is still a great value," an e-mail to customers claims, "saving you at least $3 to $10 per month over comparable plans from other major Internet service providers."

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While AOL still makes $2 billion a year from its dial-up business, they've made it clear they want to be an advertising and portal juggernaut instead of a connectivity provider. A price hike simply expedites the already bloody subscriber mass exodus. You can apparently stay at the $10 rate if you don't call for software support. CNET seems to believe the price hike is a work of genius, disguised as the work of an idiot:
quote:
Critics may be wise to take a deep breath before deriding AOL for a boneheaded membership disincentive for people who have abundant other options. The change could wring more revenue from low-value subscribers, lower AOL's costs for those who stay at the $10 rate, and shuck the least active, least valuable AOL members.
Having not seen AOL make a solid business decision for a better part of the last decade, it seems more likely that Time Warner is simply trying to speed up AOL's "evolution" from carrier to ad engine in preparation for a sale.


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Dogfather
Premium
join:2007-12-26
Laguna Hills, CA

2 recommendations

Go figure

quote:
...they've made it clear they want to be an advertising and portal juggernaut instead of a connectivity provider.
And I thought they were in the coaster business. Go figure.