AOL's Ad-based Business Model



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Code :BSM0058C

Year :
2006

Industry : Internet and e-commerce

Region : US

Teaching Note:Available

Structured Assignment :Not Available

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Introduction:In 2006, America Online (AOL) was the largest internet service provider (ISP) in the US that provided dial-up and broadband internet access to its subscribers. It also offered them online services like e-mail, instant messaging and a lot of information through its websites. AOL had a very good brand image in the US as it had given the Americans their first taste of the internet, email, instant messaging and many more online features. During the 90s AOL was the undisputed leader of the dial-up internet access. The greeting users got (You've got mail!) when signing on AOL was so popular during the 90s that it was used as a title of a movie. But the next decade saw a total change in the online scenario which had an impact on AOL too.

The turn of the 21st century saw the merger of the internet with various domains leading to the beginning of a digital and multimedia culture requiring high speed internet connections. It also saw the merger of AOL with the world's largest media house, Time Warner. AOL, which could offer only a slow dial-up internet access, was not able to fulfill the demands of the digital and multimedia culture. Added to this changing trend, heavy competition in the field acted as a severe threat to AOL leading to a gradual decline of the AOL subscriber base...

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