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.
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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.”