AOL Raises Dial-Up Prices
by Karl Bode 05:09PM Monday Jun 30 2008 Tipped by FFH
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."
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:
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.
117 comments .. click to read
Laguna Hills, CA
quote:And I thought they were in the coaster business. Go figure.
...they've made it clear they want to be an advertising and portal juggernaut instead of a connectivity provider.