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September 7, 2012

AOL Dial up Business generating 33% Revenue

AOL dialup business is back with a bang   as the chart by Splatf shows above As of September, AOL still had 3.5 million subscribers to its dialup Internet access service generating a third of the company’s revenue and likely most of its profit? That might be more paying U.S. subscribers than Spotify and Hulu Plus have combined.

AOL’s earnings release,  shows that “average paid tenure” of its subscribers was about 10.6 years in Q3, up from about 9.4 years last year. (Of course, some of AOL’s existing access subscribers might not even realize they’re still paying for it.AOL finished June with 3.03 million subscribers, down just 84,000 from the prior quarter and 400,000 from a year ago. While the dialup industry is obviously in permanent decline, AOL’s subscriber losses last quarter were less than half what they were a year ago.

According to Businessinsider  in the last decade the  monthly AOL bills  on the average has increased from about $18 in 2001 to $19.30 in 2006 to about $17.50 now.What has changed is AOL’s overall size — much smaller now. And the bad news is that most of AOL’s profit still comes from its access business, which is still in permanent decline.


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