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Forget 4G, AOL still tricks millions of subscribers into keeping their dial-up subscription

August 7th, 2014 at 7:15 AM
AOL Dial-up Monthly Subscription

While more and more carriers and Internet service providers are looking at ways of increasing data speeds, some people are still stuck on dial-up service, or at least they’re paying for it even though they might not really need it. AOL has no less than 2.34 million dial-up subscribers left, Re/code reports, who pay just over $20 per month for dial-up Internet access, even though many of them may already get their Internet fix from somewhere else.

FROM EARLIER: AOL’s dialup business might finally, finally die in 5 years

The number of subscribers has dropped significantly from 2011, when AOL had 3.62 million subscribers paying $18 a month for the service, but the company still has a huge chunk of customers, which it charges an average of $20.86 per month right now.

The company managed to beat Wall Street’s Q2 revenue and profit numbers, with a large lump of its money coming from these faithful dial-up subscribers who don’t mind paying $20 a month for a service they might not even be using anymore.

“Tim Armstrong’s company says its subscription business generated $143 million in “Adjusted OIBDA” – its proxy for operating income — last quarter,” Re/code writes. “That’s more than the $121 million in Adjusted OIBDA that the entire company generated.”

Chris Smith started writing about gadgets as a hobby, and before he knew it he was sharing his views on tech stuff with readers around the world. Whenever he's not writing about gadgets he miserably fails to stay away from them, although he desperately tries. But that's not necessarily a bad thing.




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