Archives - Business: Page 33
Author: rhyco5 (Tue Jul 11, 2006 1:46 pm)
Title: AOL to Make Their Services Free
AOL is seeking to make there online services free of charge. This drastic action is going to cut AOL's subscription revenue from 1.6 billon to 800 million within the first year (2007). However the company believes that their operating revenue will grow even more rapidly as advertising revenue is expected to increase from 19% to 42% by 2009. The company may become a very profitable stock within the next 3 years.
That is a very bold change to make for such a large company. I agree the stock price could fluctuate positively within the next three years. Only time will tell if this move will truly boost their advertising revene as much as they believe it will. The real question, will people pay more to have an ad on AOL's site? I suppose so, assuming that more users take advantage of their free subscription service. Personally, free or otherwise, AOL is too slow for me.
While they are too slow for you they don't appear to be for millions of users around the world. Remember that an AOL subscription does not equal dial up, it just allows you to use there browser and all the high tech components that come with it, such as security features. I pay 15 dollars a month to AOL for use of there browser. Millions of people pay for AOL when other browser and internet services are free. Just image the millions.......and millions of AOL hopefuls that are going to flock to there services now.