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AOL Expected to Make Major Announcement

Posted by Chris Leckness on July 28, 2006 – 10:16 am  Share
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No, they are not announcing AOL 12, or "1000 free hours" or a Christmas tree full of AOL cds. Nor are they announcing an end to their incessant implantation of AOL software all over your computer with no way to fully remove it. What they are announcing is revolutionary, however – at least for them. In order to compete with all the free email services, ala Yahoo Mail, Hotmail, Google Mail etc, AOL is expected to announce that it intends to drop charges for its AOL online service, though it will likely charge for its dial-up internet access.

Though many customers express dissatisfaction with AOL, they stay because of the email address. According to Joe Laszlo, senior analyst with JupiterResearch, AOL "has been losing subscribers quarter after quarter for the past several years, and nothing is likely to change that."

The new strategies that AOL will look to employ are several. Beginning with security features such as their antispyware and online child protection options. They must also partner with ISP subscribers to build their customer base. And according to Laszlo, "The online advertising model is in a boom right now. It’s very easy to build a profit model based on ads and not on fees."

 


AOL has many negative perceptions to overcome, such as justifying charging $25/month to their customers when so many quality free services abound, and the recent reports illustrating their customer service not willing to cancel customer accounts even upon insistence by the customers themselves. In addition, their intrusive software is difficult to remove from computers and most people have the perception that AOL is for "new users" of the internet. In fact, when I first started using the internet in the mid 90’s, I used AOL and thought that AOL itself was the internet. That’s why it gives me a sour taste.

Is this change really revolutionary? Hardly. They’re just trying to compete with the plethora of free services that have been thriving for years. Only AOL has a monkey on its back that the others don’t.

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Chris Leckness (3549 Posts) - Website | Twitter | Facebook

Chris Leckness is the Owner/Administrator of Mobilitysite. He is a Microsoft MVP, Mobile Devices and a member of the exclusive focus group, Mobius. Chris runs a Mobilitysite, GotZune, and a few other smaller sites and blogs. His personal blog is chris.leckness.com.





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