While AOL has become irrelevant in other departments, mainly search, they still manage to bring in a heft $500 million from its dial-up subscription business, and that actually accounts for a majority of the company’s revenue. It’s actually enough to cover all its other departments costs and still make a profit. But how have they managed to do this?
For starters, they keep bundling even greater deals to its subscribers to help keep them locked in. You can also take a fair guess and say that the majority of its user base are the more senior among us, along with those who live in areas not serviceable by broadband cable or DSL.
Unfortunately for AOL, it’s still a slow but shrinking business. Nonetheless, it’s still a very profitable cash cow and AOL could use these revenues to bolster other divisions and even enter new business arenas to possibly make a come back.
[Cover Photo: AOL]