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AOL's "Dirty Little Secret": 60% of AOL's Profits

satuon (1822492) writes | more than 3 years ago

America Online 4

satuon (1822492) writes "Ken Auletta's big New Yorker piece on AOL (subscription only) this week revealed an interesting detail about the company's inner workings. According to Auletta, 80% of AOL's profits come from subscribers, and 75% of those subscribers are paying for something they don't actually need.

Auletta lays out how this works:
The company still gets eighty percent of its profits from subscribers, many of whom are older people who have cable or DSL service but don't realize that they need not pay an additional twenty-five dollars a month to get online and check their e-mail. "The dirty little secret," a former AOL executive says, "is that seventy-five percent of the people who subscribe to AOL's dial-up service don't need it.""

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In Capitalist America.. (1)

lul_wat (1623489) | more than 3 years ago | (#34971722)

Company Screws You!

All 80 subscribers.... (1)

twebb72 (903169) | more than 3 years ago | (#34971936)

This is what happens when you go from 30 million to 80 subscribers -- those that are left simply never check their bank statement and have been on auto-bill pay since 1995.

The point to take away from this article is... (1)

twebb72 (903169) | more than 3 years ago | (#34971940)

The point of this article is not that 80% of AOLs profit comes from subscribers... It's that AOL has a profit!

Re:The point to take away from this article is... (1)

Gripp (1969738) | more than 3 years ago | (#34972262)

lol, that really is hard to believe actually! moreover, hasn't AOL always been useless garbage that people didn't need?
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