How is AOL still making money? WTF are they doing?

[Zeze]

They were popular as a dominant ISP of America back in the days.

I STILL see their ads on mainstream media. WTF are they doing nowadays?

Oh they're content providers now (much like yahoo).

 

[AstroManLuca]

Collecting ISP bills from old people who are afraid of change?

Heh, I remember someone whose parents still had Compuserve dial-up at home as recently as maybe 2005. They were pretty well off too. I think they must have finally upgraded to high speed but never underestimate how much some people fear technology.

 

[guyver01]

They;re not making money.

From March 2011:

AOL’s profits fell 86% from the first quarter of 2010 to now, as its subscriptions and advertising revenue continued to suffer.

In a statement, AOL CEO Tim Armstrong tried to find a positive note. He said the quarterly financial report includes a milestone for one advertising revenue stream: display ads.

Global display ad revenues grew for the first time since 2007. Display ad revenues increased 4% from Q4 2010 to Q4 2011, and domestic display revenues jumped 11%, or 6% excluding recent acquisitions The Huffington Post and TechCrunch.

Advertising revenue overall, though, fell 11% to $313.7 million compared to $354.3 million in the same quarter in 2010. Weak spots included search and contextual ad revenue, which fell 21%, and international display, which plummeted 46%. The rate of AOL’s total ad revenue decline did at least improve from Q4 2010, when advertising revenues slipped 29% from Q4 2009.

Subscriptions are on the decline too. Revenue from them fell 24% to $215.4 million. In all, AOL’s revenue fell 17%.

The company’s net income includes $27.8 million in restructuring expenses related to The Huffington Post acquisition. AOL paid $315 million to acquire the company in March.

 

[overst33r]

Oh they're content providers now (much like yahoo).

this

 

[Jeff7]

Collecting ISP bills from old people who are afraid of change?

Heh, I remember someone whose parents still had Compuserve dial-up at home as recently as maybe 2005. They were pretty well off too. I think they must have finally upgraded to high speed but never underestimate how much some people fear technology.

And those whose only other option for Internet is $50+/month broadband, which is too expensive.

 

[ElFenix]

AOL has always been a content provider. they were their own network, mostly separate from the internet, from the get go. it was a glorified BBS.

 

[IronWing]

They realized tremendous cost savings when they discovered they didn't need to mail out eleventy billion CDs a month.

 

[zinfamous]

Oh they're content providers now (much like yahoo).

This. I'm surprised you haven't noticed by now that one of the more popular web media streams out there is now AOL.

I think they bought majority of Yahoo news, didn't they? or something like that.

 

[rudder]

AT&T still makes money leasing phones... go figure.

 

[AMDZen]

So you started a thread just to ramble on for two sentences and then answer your own question in the third?

Nice!

 

[Zeze]

So you started a thread just to ramble on for two sentences and then answer your own question in the third?

Nice!

Still curious how they're making money providing 'content' that no one seems to use.

 

[PingSpike]

Bilking long time old people customers I imagine, same as always. As their customer base continues to die their revenues continue to slide.

 

[Nebbers]

Old people who don't realize that there are other ways to access the Internet and have just never cancelled.

Also, buying Huffington Post and completely fucking it up.

 

[AMDZen]

Still curious how they're making money providing 'content' that no one seems to use.

Same way the entire Internet does, advertising.

Its not really that hard to figure out, they have email service, AIM, as well as a slew of other services they offer people and they get ad revenue based on hits as well as clicks.

How does Google make money?

 

[Nebbers]

Same way the entire Internet does, advertising.

Its not really that hard to figure out, they have email service, AIM, as well as a slew of other services they offer people and they get ad revenue based on hits as well as clicks.

How does Google make money?

Google doesn't make money. They do it all out of the goodness of the heart.

 

[Capt Caveman]

Still curious how they're making money providing 'content' that no one seems to use.

Obviously, people still do.

 

[l0cke]

Didn't they buy Engadget, Joystiq, etc?

 

[AMDZen]

Bump:

AOL Still Has 3.5 Million Dialup Subscribers

Buwahahahaha