AOL Courts Economy Class Users
The new service, which runs under AOL's Netscape brand, launched a promotion earlier this month. It costs $1 per month through February, when it will return to the normal rate of $9.95 starting in March. Full-service AOL costs subscribers $23.95 a month.
The new service is a stripped-down version of the full service minus extras like original programming and high-speed Internet music videos. AOL has turned to the cheaper service option after the mass exodus of thousands of AOL subscribers to lower-cost competitors like Juno and NetZero. In the third quarter alone, AOL lost 688,000 subscribers, amounting to 2 million on a year-over-year basis.
According to Mark May, an analyst at Kaufman Brothers, "At the end of the day, the AOL service just costs too much. AOL has estimated 10 to 15 percent of the customers that called to disconnect cite price as a reason." He adds that the new Netscape product is a big step toward preventing future defections.
Recent Online Media Daily Articles
-
Coca-Cola Loses Bid To Dismiss Text-Spam Case May 24, 5:41 p.m.
Consumers can proceed with a lawsuit against Coca-Cola for allegedly sending them unwanted SMS messages, a ... -
Disaster Ready: Google Maps Model Quickly Adjusts To Events May 24, 5:29 p.m.
The four-lane bridge in Washington state that partially collapsed Thursday into the Skagit River was removed ... -
Pandora Beats Rev Estimates, Adds Subscribers May 24, 5:01 p.m.
Online radio service Pandora on Thursday reported that revenue rose 55% in the first quarter to $126 ... -
Real-Time Web Turns Consumers Into Impulse Buyers May 24, 4:37 p.m.
Video, mobile, social, and better search capabilities continue to make it easy for consumers to buy ... -
Mugnier Shares M&C Saatchi's Mobile Approach May 24, 4:32 p.m.
M&C Saatchi Mobile was formed three years ago through the acquisition of mobile marketing agency Inside ... -
Yahoo Search Experiments With New Look May 23, 6:30 p.m.
Yahoo Search has been experimenting with colors, features and layouts, as the company tries to determine ... -
Path Seeks Dismissal Of Wireless-Spam Case May 23, 5:07 p.m.
Mobile social network Path is asking a federal judge to dismiss a lawsuit alleging that the ... -
Amazon Appstore Goes Global May 23, 4:59 p.m.
Amazon may have been late to the app store game, but that hasn’t stopped it from ... -
Data Is Springboard For Product Development May 23, 4:44 p.m.
iProspect named Ben Wood to global president Thursday; he's tasked with growing the company's network and ... -
Vice, Twitter Partner For Mobile Show May 23, 2:14 p.m.
Simultaneously expanding its video and social strategy, Vice on Thursday unveiled #dailyvice -- a daily show ...
Be the first to comment on "AOL Courts Economy Class Users"
Leave a Comment