AOL hits top of on-line hill with CompuServe deal; now observers wait to see if market dominance can translate into dollars
Article Abstract:
America Online (AOL) has positioned itself as the dominant Internet service provider, and marketers will study AOL to determine whether it can offer profitable opportunities. The Sep 1997 addition of 2.6 million CompuServe customers, pending final approval, would swell AOL's lead to nearly 12 million subscribers. Cyberspace advertising has not attained lucrative status, because electronic billboards are failing to hold the attention of an increasingly splintered audience. AOL capacity also remains an issue, although the service has rebounded from traffic complaints and plummeting stock prices in Feb 1997. AOL's network capacity barely surpasses 400,000 customers simultaneously, compared to TV ads' ability to reach up to 80 million viewers. AOL plans to compete with TV and print media for increased ad budgets, according to service leader Robert W. Pittman.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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America Online plans $385 million charge; about-face on accounting raises hard questions about past, future net
Article Abstract:
America Online (AOL) plans to take a $385 million pretax charge against its 1st qtr, which ended Sep 30, 1996, and another $75 million charge for the subsequent quarter. The initial charge is part of a plan to change the company's highly criticized accounting practices, in which AOL posted quarterly profits without writing off its marketing expenses. The second charge is related to restructuring expenses. The company has reorganized into three divisions and changed its pricing structure to provide users unlimited access for a basic fee. AOL Chmn and CEO Steve Case denies rumors that these actions are a precursor to offering the company for sale. Former MTV executive Robert W. Pittman will head the new AOL Networks division. The other new divisions are AOL Studios and ANS Communications. The restructuring eliminates the positions of president and COO.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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NetChannel Inc. is likely to shut down Internet-via-TV service this weekend
Article Abstract:
NetChannel is expected to halt its Internet-via-TV service the weekend of May 2, 1998, amid discussions of an acquisition by America Online. The struggling rival of Microsoft's WebTV subsidiary will inform its 10,000 subscribers within days of plans to discontinue its service, according to executives familiar with the matter. AOL has loaned NetChannel about $5 million since Nov 1997, and the companies have held acquisition talks in recent months. Among AOL's worries about NetChannel is its inability to handle large number of users simultaneously. An acquisition scenario could involve AOL paying approximately $20 million in cash for NetChannel, including its previous loan, according to the executives. NetChannel's customers can link a conventional TV and Thomson Multimedia's special, RCA-branded set-top box to browse the Web.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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