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Showing posts with label AOL. Show all posts
Showing posts with label AOL. Show all posts

May 12, 2015

The Verizon and AOL 4$4.4billion deal to create a technology media monolith

why verizon  is acquiring  AOL for $4.4billon"








 This chart compares dial up, broadband and mobile eras of the internet ecosystem.  against iphone 4G subscribers vs Netflix subscriber base in US. if you study this chart  for long enough.. you will realise why Verizon Communications is buying AOL for $4.4 billion

 The rational of Verizon’s $4.4 billion deal to acquire AOL is because of that one device that is changing the world in ways that was never though to be possible. MOBILE . 

Verizon needed arsenal at its command to build up its nascent video business and advertising across consumer's mobile phones .. and the best way to get them was AOL which has transformed itself into a media company and invested heavily in technology that automates the sale of online advertising process  

 Verizon's woes with 130 million subscribers has of late been typically those  of all legacy carriers , whose business is threatened by newer entrants and competitors  that are finding alternative means of connecting and hooking up to the internet via wi fi mesh networks and facing competition from giant players like  google  who have started to challenge them at their own game 

Read the full analysis of the Verizon and AOL Merger

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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April 21, 2011

The Unfolding of Yahoo Search Revenue Disaster


During the last two quarters, Microsoft has taken over Yahoo’s U.S. search advertising in return eventually for 12 percent of Yahoos’ search revenues. The red line shows what Yahoo got to keep after paying Microsoft, and the blue line is what it makes off of search before paying Microsoft. That blue line is down 8 percent in the last two quarters You can see the gap between the red and the blue lines in the second chart below. 

Yahoo continues to have consistent  lousy quarters. Revenues were down 6 percent, profits were down 28 percent. What’s more, it’s search partnership with Microsoft isn’t going so great. And the finger pointing is starting.

In a very detailed analysis, Danny Sullivan of SearchEngine Land charts the decline of Yahoo’s search revenues over the past two years. What he calls “net search revenues” (the money Yahoo gets to keep after paying off partners) is down 35 percent from a peak of $551 million two years ago to $357 million. He shows the decline in this first chart below. 

Before the fourth quarter of 2010, Yahoo used its own ad platform. But in late October 2010, it began carrying ads from Microsoft. This was part of the Yahoo-Microsoft deal, where Yahoo largely gave up having its own search technology and ad system, outsourcing this to Microsoft.

As part of the deal, Yahoo agreed to pay Microsoft 12 percent of its net search revenues. The red line reflects this, net revenues that were left after payments went out to Microsoft. This big new chunk of money flowing out is what Yahoo has been calling “headwind” that has accelerated its year-over-year growth decline.

 According to Techcrunch 
"The Microsoft Yahoo Deal  is not working out as planned, and Yahoo blames Microsoft. It’s not quite where it should be yet in terms of its revenue per search. Yahoo CEO Carol Bartz said during the earnings conference call:

"adCenter isn’t yet producing the RPS [revenue per search] we hoped for and are confident as possible."

What is implies is that  Microsoft is under-monetizing Yahoo's properties(search). And organic search results from Bing apparently are too good, which makes people click the paid search ads even less. Even Yahoo’s inflated search market share figures (due to slideshows and other forced search methods) weren’t enough to generate more revenues.