Reborn AOL’s getting the juice?
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AOL executives are surprised but keep smiling. Their new business model, focused on broadband services like Yahoo, is paying off. And advertising revenues are growing, even for its AIM instant messenger.
The Washington Post did a check up of the company. According to numbers released the last week showed that in the third quarter, everything is doing fine.
- “AOL lost 2.5 million Internet access subscribers but held on to 2 million of them as customers of its free service. Executives said they were surprised to see an additional 1 million sign up for free e-mail or download AOL’s software.”
- Most traffic comes from broadband Internet users, outrunning dial-up subscribers.
- 46% jump in ad revenue for the period.
The main conclusion to say about refreshed AOL is that if an ISP could cut costs and turn profitable this way, Web portals would bring the heat up on each other, and chase social networks a lot more than they’re doing right now.
Nov 6, 2006 | By Nuno
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