Will AOL for Broadband Make its Numbers?
At the Software Developer’s Forum yesterday, Miguel Monteverde explained how AOL was moving away from being an ISP ands becoming a content provider.
Specifically, Miguel explained AOL’s vision of AOL for Broadband, a content and entertainment rich premium offering. This new service will run across cable
and broadband provider’s networks into the homes of subscribers willing to pay an extra $14.95 a month for the AOL value pack of music and movie services,
integrated IM and multimedia email.
Miguel did a great presentation, with a wonderful concept videotape, but it left me wondering where AOL thought it was going to get these subscribers from.
Would households already paying hefty cable and DSL bills tack on the premium for additional services? Or will the primary audience for AOL for Broadband
be AOL’s curent subscribers who are eager to hold on to their email addresses even as they move to DSL and cable modem?
My guess is that it is going to be hard to get a substantial number of consumers to pony up cash for the new service–but that AOL may be able to grow the
numbers for Wall Street through bundling and offering extended trials.
How much will AOL pay out?
On a seperate note, CNN reported today that AOL may have to pay $1B to settle shareholder suits brought against them.
AOL Spam-sifter or Spam-killer?
ZDNet UK reports that AOL is blocking up to 2B spam messages a day from the service. Considering that I receive at least 50 spam messages a day, this news is alarming.