AOL’s products that had been dedicated to subscribers only, like AOL.com email, have been freed from their walled garden; the company is betting on advertising revenue to replace subscription dollars with the move.
Email has been the one point of contact that has kept many users with AOL as subscribers. AOL has been in service for over a decade, and long-time users may have been reluctant to let their email addresses go away by leaving.
AOL has several new services debuting in the coming weeks as it makes this dramatic shift in its business model. All of these services will be free:
• Comprehensive safety and security tools that protect your entire PC and work with or without the AOL software
• A new AOL video experience with access to millions of high-quality videos and the most powerful video search on the Web
• Your own personalized e-mail address: you@thenameyouwant.com
• New software that is more than a browser — it’s a breakthrough four-pane design that will revolutionize the way you use the Internet
AOL chairman and CEO Jonathan Miller had been tied to this change in reports that emerged in early July. He commented on today’s announcement about the move:
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. For members who’ve left us over the past two years, we’ve kept your e-mail address.
That email retention could be a big plus. AOL now places advertising in email, and bringing back a few thousand former subscribers to receive those ad impressions could be a profitable return for the company.
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David Utter is a staff writer for Murdok covering technology and business.
