Free AOL

[Janice]

I got this e:mail from AOL today.




Dear AOL Member,

I want to let you know about some exciting changes happening at AOL. Our service has always provided both a way to connect to the Web and an entertaining online destination once you're connected.

Today we are announcing that AOL's software, email, and many compelling AOL features -- including your Address Book, Screen Name, the Buddy List® feature and more -- will be free to everyone with an Internet connection.

What Does This Mean for You?

Nothing about your service arrangement with us will change unless you want it to. Your current plan, which includes 24/7 customer support, unlimited email storage, your email addresses and all the AOL content and services you rely on, will still be there for you.

Even if you choose a different high-speed provider from the one you use to connect to the Internet today:

• You can keep your AOL Screen Name and email address for as long as you want to use it, completely free;
• You can continue to use your AOL software, and you can still get all your favorite features and content, completely free;
• You will still get the most comprehensive free set of safety and security tools available, plus world-class, high-speed content like video, music and more.

All of this is free, no matter who provides your Internet connection.

Why Is AOL Doing This?

We're simply changing with the times. There are many options for Internet access, whether it's dial-up or broadband. At the same time, a lot of online content and services are now available on the Web free of charge because they are supported by advertising. So, while your Internet connectivity needs may change over time, what you love about the Web does not. We are now able to ensure that the familiar AOL experience, your Screen Name, your Address Book, your Buddy List, your Favorite Places, and other content and features you enjoy, will always be available to you for free.

In September, you will be hearing about more changes and other new features at AOL. Until then, you can visit AOL Keyword: New AOL for more information and to sign up for informative email alerts.

Sincerely,

Jon Miller
Chairman and CEO
AOL LLC

[Cactus Jack]

I got that too!

[Janice]

I don't understand. How will they make any money and why stay in business?

[Jo_Luvs_Ketchup]

I just got that email too! Does this mean we don't have to pay them anymore? I agree Janice, I don't know how they will stay in business if they don't charge...

[Ireneparalegal]

I have AOL, and I haven't a clue what this means??? I am with Kelly, I don't get it and how will they stay in business???

[MsOrange]

Awesome... I might get AOL at that price!

[dawsongirl]

Is that for just dial up or for high speed too? That is odd. Sounds like it'll be ad supported...a lot of ads.

[Jo_Luvs_Ketchup]

Okay a friend explained it to me. We think what it's saying is if you switch internet services, you can keep your AOL screen name and email.

[PZelda]

There was a story about it in my newspaper today. Cathy is right, they're going to have more ads.

http://news.yahoo.com/s/ap/20060803/...bling_walls_50

AOL e-mail accounts, software to be free

By ANICK JESDANUN, AP Internet Writer Wed Aug 2, 10:36 PM ET

NEW YORK - AOL just gave its customers more reasons to stop paying. In a strategy shift likely to accelerate the decline in its core Internet access business, AOL said Wednesday it would give away e-mail accounts and software previously available only to customers who paid as much as $26 a month.

AOL hopes to chase additional online advertising dollars instead. Encouraged by such trends as its 40 percent jump in ad revenue in the second quarter, AOL figures that by making services free, it can prevent users from defecting to Yahoo Inc. (Nasdaq:YHOO - news), Google Inc. and Microsoft Corp., which have offered free, ad-supported e-mail for years.

Rob Enderle, an analyst with the Enderle Group, said the restructuring brings Time Warner Inc.'s online unit in line with "this decade as opposed to the last decade" and lets the company "hold on to the customers they had left."

"Had they done nothing, by the end of the decade, they would have been gone," Enderle said.

The move marks the end of an era for a company that grew rapidly in the 1990s by making it easy to connect online, giving millions of Americans their first taste of e-mail, the Web and instant messaging through discs that continually arrived unsolicited in mailboxes.

America Online, as it was then known, became the undisputed leader of dial-up Internet access when many people still used that method to get online. The greeting users got when signing on — "You've got mail!" — became so ensconced in pop culture that it was the title of a movie. AOL's shares flew so high in the Internet bubble that the company bought the Time Warner media giant in 2000.

But many promises of synergy from that deal evaporated. The company's stock plunged, key AOL executives left under pressure and now Time Warner management is firmly in charge.

AOL kept losing subscribers as more Americans got high-speed service through a cable or phone provider.

"This is the final goodbye to the days when AOL was the king of the Internet," said Jeff Lanctot, general manager of aQuantive Inc.'s Avenue A/Razorfish, an agency that places some ads on AOL sites. "They now know they are the underdog."

The company expects to save more than $1 billion by the end of 2007 by cutting marketing, network and overhead costs. That's also roughly the amount AOL could lose annually if all 6.2 million of its subscribers with broadband stop paying extra — generally $15 a month — for access to AOL's content.

"Any guesses or speculation that this plan requires a `hit' to AOL earnings is not right," said Jeff Bewkes, president and chief operating officer of Time Warner.

However, AOL will continue losing dial-up subscribers, perhaps at a faster rate as the company scales back its notoriously aggressive retention efforts and no longer actively markets the service to obtain replacements.

"But we have to remember that we're changing the nature of this game," Jonathan Miller, AOL's chairman and chief executive, told The Associated Press. "Before, when someone left us, that was not good for our company. They probably went to one of our competitors."

Now they can stay with AOL for free and view its ads.

"They were leaving us over price," he said. "They weren't leaving us because they were unhappy."

Lanctot said AOL could pull off the strategy shift given its "tremendous potential" to tap video and other resources from other Time Warner units as well as a sizable subscriber base — which, while dwindling, still makes AOL the leading Internet access provider.

The strategy shift will mean layoffs in marketing and customer service, but AOL would not say how many. Implementing these changes is expected to cost $250 million to $350 million through 2007, about half for employee severance.

AOL first moved away from its roots as a "walled garden" emphasizing exclusive content in 2004, making most of its news, music videos and other features available for free on its ad-supported sites.

Although the company tried to keep some customers paying by giving free e-mail accounts only with less-desirable AIM.com addresses, many subscribers defected to free offerings elsewhere. Miller said the latest strategy shift aligns AOL with the industry "instead of us fighting a trend."

While customers with broadband no longer will have to pay AOL anything, AOL will still offer dial-up accounts at $26 a month for unlimited use. To compete with cheaper dial-up services from companies like United Online Inc., AOL is creating a new $10 monthly plan with unlimited access but fewer features than the $26 plan.

Besides AOL.com e-mail, AOL is giving away its proprietary software for accessing the once-premium offerings, as well as safety and security features such as parental controls. Most features become free immediately, though parental controls and services targeted at kids and teens won't be free until early September.

Subscribers who dropped AOL within the past two years — about 6 million households, some with multiple e-mail addresses — will be able to reclaim their old AOL.com addresses simply by logging on with their old passwords.

Those who want to stop paying will have to call AOL.

John Goodman, 58, a longtime AOL user who works in public relations in Crestwood, N.Y., was among those who, until Wednesday, paid $26 a month primarily for e-mail.

"I stayed with it for years paying, knowing I was an idiot," he said. "I'm very pleased they are making this move."

The changes were announced Wednesday as Time Warner reported a profit of $1 billion for the second quarter. AOL, which saw a 2 percent drop in revenue, accounts for one-fifth of Time Warner's revenue, and most of that contribution comes from subscription sales.

So the bet here is that rising advertising income and cost savings can be enough to replace the missing subscription revenue. AOL believes the trend was already in effect anyway: While its ad sales rose 40 percent in the second quarter, subscription revenue dropped 11 percent.

AOL considers its paying subscribers loyal, crediting them for 80 percent of the pages viewed — and ad dollars generated — even though they make up only 36 percent of the unique audience. But AOL would have risked losing them — and the ad opportunities they represent — by making them keep paying.

The company lost 976,000 U.S. subscribers in the past quarter alone. As of June 30, AOL had 17.7 million subscribers, a 34 percent drop from its peak in September 2002.

The number of unique U.S. visitors to AOL sites has remained steady, while its three chief rivals all saw gains in June, according to Nielsen/NetRatings. ComScore Media Metrix found that in June, pages viewed at the main AOL sites — by subscribers and free users — dropped 26 percent, while Yahoo increased 23 percent.

Nonetheless, AOL sees opportunities in emerging features like online video. On Friday, AOL is revamping its video portal to give visitors one-stop access to free and for-pay clips from around the Internet, including those at rival sites like YouTube. The company hopes that by creating a user-friendly experience, the market would grow for everyone, including AOL.

Shares of Time Warner, which hovered near a 52-week low of $15.70 in recent weeks, rose 42 cents, or 2.6 percent, to close at $16.67 on the
New York Stock Exchange.

[robyrob]

YES! I would like to sign up fo your free truckload of

...of course you would still pay for it if you get your internet access from them, they are just saying that you can use their [s]spyware[/s]software and services for free. They make their money of that by directing advertising directly to you [s]and selling all of your info to their "partners"[/s]

[Mr. Stefani]

I once had free aol for a year. I did the trial, then when i went to cancel it they kept giving me more free months. I finally just had to get rid of it they were beginning to annoy me.

[theshark8777]

This does not include anyone on thier dial up. But if you bring your own access, I guess some of the features are free. I didn't totally understand it.

Also believe it or not, my AOL email box doesn't get spam anymore. I never use it, but still. I've had it for years. I also dont use AOL as my internet company.

[Kristen]

I believe they're going to be more like Yahoo, w/ free email and IM. I called and switched last night. I had been contemplating leaving AOL, but was worried about losing my screennames and email addresses. So this was def. good news for me.

[passionsfan79]

I kept cancelling as well and they offer me for free months and I said no finally.

[Holly]

I just got that message just now in my email here it is below.... what are they gonna do new to aol??? this should be interesting



Dear AOL Member,

I want to let you know about some exciting changes happening at AOL. Our service has always provided both a way to connect to the Web and an entertaining online destination once you're connected.

Today we are announcing that AOL's software, email, and many compelling AOL features -- including your Address Book, Screen Name, the Buddy List® feature and more -- will be free to everyone with an Internet connection.

What Does This Mean for You?

Nothing about your service arrangement with us will change unless you want it to. Your current plan, which includes 24/7 customer support, unlimited email storage, your email addresses and all the AOL content and services you rely on, will still be there for you.

Even if you choose a different high-speed provider from the one you use to connect to the Internet today:
You can keep your AOL Screen Name and email address for as long as you want to use it, completely free;
You can continue to use your AOL software, and you can still get all your favorite features and content, completely free;
You will still get the most comprehensive free set of safety and security tools available, plus world-class, high-speed content like video, music and more.
All of this is free, no matter who provides your Internet connection.

Why Is AOL Doing This?

We're simply changing with the times. There are many options for Internet access, whether it's dial-up or broadband. At the same time, a lot of online content and services are now available on the Web free of charge because they are supported by advertising. So, while your Internet connectivity needs may change over time, what you love about the Web does not. We are now able to ensure that the familiar AOL experience, your Screen Name, your Address Book, your Buddy List, your Favorite Places, and other content and features you enjoy, will always be available to you for free.

In September, you will be hearing about more changes and other new features at AOL. Until then, you can visit AOL Keyword: New AOL for more information and to sign up for informative email alerts.

Sincerely,

Jon Miller
Chairman and CEO
AOL LLC