AOL Throws the weapons
The business that dominated the usage of commuted Internet comes to seize with the future. As the high-speed usage increases in a manner spectacular, AOL looked at subscriptions decline of the and the advertising dollars transfer to Google, Yahoo, and MSN. The surface approaches the report lack, AOL decided to act.
AOL Reinvents
In an effort to compete, AOL himself reinvents as a usage portique open. To date, AOL always limited the usage of his portique to the subscribers. Not longer. AOL is the silly one trying a portique that does the services and available happy to all. If all go well, the business will launch the service this month.
AOL Motivation
The growth of high-speed usage corresponded to the decline of AOL. It is considered that as much of as 20 percent of subscribers left the service in the last one three years. This loss, of course, corresponds to an income loss. As a publicly exchanged business, AOL must act or must do facing a revolt of shareholder.
The taken one 22?
AOL plays a dangerous game with the free portique. The business risks losing more subscribers that sank with the business simply because they like the portique of AOL. If "You Obtained from the Mail" is now free, why does not import that would pay it? AOL will furnish soon a response.
The amplest questions complicating, AOL does facing an extremely difficult transformation. There is a cliched - IF IT walks as a duck, a charlatans as a duck and an odors as a duck, the this is a duck". To his heart, AOL is a business of commuted connection. How will probable it east that AOL transform in easily Yahoo, MSN or Google? The time will say, but the one can foresee AOL to learn some hard lesson in the transformation.
What it Means For E-BUSINESS
The development of AOL has little directs the impact on e-business. With the passing of the time nevertheless the new strategy significantly could influence Google. Google furnishes currently the results of research to AOL and places Google Adwords on the system. As the subscribers diminish, you can foresee AOL to develop solutions to replace Google. A lot of as Yahoo did, Google finally will be loaded with the plateforme of AOL. The loss of 20 millions of AOL users must cause Google some dismay.
Internet is a dynamic plateforme and in evolution. The transformation of AOL is just another step in the process. Only the time will say if AOL can adapt in the evolutionist process.
Posted on June 15, 2010.