Blog Post

New AOL Strategy Detailed; No More Charges For E-Mail, Other Broadband Sub Services

Time Warner executives confirmed today that the company is taking the most drastic step yet when it comes to AOL — forgoing billions of subscription revenue. Broadband subscribers no longer will have to pay for e-mail, its software, or the safety and security services, including the parental controls, AOL has been touting as a reason to pay for AOL Broadband. In an effort to recapture the loyalties of former subscribers, anyone who left in the last two years should be able to reactivate their screen names and reclaim their AOL e-mail in September.
— More free products will be rolled out as AOL strives to expand its advertising base.
— AOL will continue to offer dial-up access but no longer will market it aggressively.
Time Warner President and COO Jeff Bewkes and AOL Chairman and CEO Jonathan Miller will provide more details during a conference call at 11 a.m. eastern. In the meantime, here’s how they pitched it in the announcement:
Bewkes: “This is the next logical step for AOL to capitalize further on the explosive rise in broadband usage and online advertising. With its robust and rapidly expanding advertising operation, we expect to put AOL back on a growth path.”
Miller: “We’ll now be able to maintain and deepen our relationship with many more members who are likely to migrate to broadband. Providing them with their familiar AOL software and e-mail for free, over any broadband connection, will be critical to our future success.”
More to come.