AOL in Dire Straits
AOL is scrambling to keep the ship from sinking. They may have to restate $400 million in earnings from 2002, their subscriber base actually declined last year, and now they're rushing to try to keep subscribers who are demanding broadband access from jumping ship.
CNET: AOL touts new broadband pacts
I'll give them some credit, though. I think it was a wise decision to move some of AOL Time Warner's print mags behind the AOL "firewall" as a way to protect and capitalize on their content assets. To me, it seems very silly for any print publisher to give away the entire contents of their magazines free online. I'm glad that some of them do (Fast Company, Wired, St. Louis Post-Dispatch), but I sure don't get the reasoning behind it
If nothing else, they should charge a nominal access fee to read the content online as a way to recoup their costs. It take a surprising amount of money to run a content site (so start donating to the Traffick.com charitable fund today by visiting our sponsors down the left side of the page! :)
Posted by Cory Kleinschmidt
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