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Home >> ISP Resources >> Telephony News >> AOL faces shrinking sales
Posted by admin, Mon, 23 Oct 06 06:41:20 -0400
AOL is hurting for certain. They're slowly switching from a subscriber-based model to one supported by free advertising, but the switch is not without its' costs. Sales are plummeting, and the trend is expected to continue for several years.
AOL recently raised $2 billion in cash by selling it's ISP units in German, Britain, and France. The strategy is paying off already, to a degree. The company announced a 40% increase in advertising sales to $449 million in the latest quarter. In the same period, AOL lost 2% of its' subscription revenues as the business fell off.
AOL expects brighter days ahead:
"Maybe another two years, you are right there," Jonathan Miller said when asked by German newspaper Die Welt whether sales would continue to fall. "But it's about profitability for us in this phase."