America Online

1
America Online

• Kylene Leibel

2
AOL

• World wide provider of interactive online
  services for its members
• Key word locators
• Youve got mail

3
AOL Revenue
2001 Total Revenue 2.1 billion

• 1.3 billion in Subscription Revenue
• 706 million in Advertising and Commerce

4
AOL History

• 1989 AOL is introduced
• 1990 AOL starts giving away free trial hours
• 1992 AOL becomes a publicly traded company

• 1994 AOL members able to access the internet
• 1997 10 million AOL members
• 2001 AOL and Time Warner merge
• 2002 AOL 8.0 is introduced

5
Business Status

• Questionable Accounting Practices
• Shifts in Corporate Leadership
• Decline in Revenue
• Lack of broadband customers

• Steady market share in dial-up membership
• Expanding E-commerce market

6
Misleading Accounting
Reported as AOL advertising revenue.

• arbitration award
• Ads sold on behalf of eBay
• pending litigation with Ticketmaster
• Trade with Sun Micro Systems
• Stock rights with PurchasePro.com

49 MILLION
7
Business Status

• Questionable Accounting Practices
• Shifts in Corporate Leadership
• Decline in Revenue
• Lack of broadband customers

• Steady market share in dial-up membership
• Expanding E-commerce market

8
Business Status continued..

• Pop-up ads
• AOL members
• ? AOL profits
• Raised subscription rates
• AOL profits
• AOL subscribers

9
ANY QUESTIONS?