Once dial-up was the rage of the day and counted among the cutting-edge connectivity technologies. Then high-speed internet, fiber optics, broadband and 2G and 3G took over, pushing dial-up to oblivion. Yet, it is surprising to know that AOL still brings home more than $150 million each quarter, thanks to its dial-up business.
It is indeed shocking to note that in these days of 3G connectivity, there still are millions of users who are hooked up to the dial-up internet and are apparently content with it. During the fourth quarter of 2012 alone, AOL was able to amass an operating income of $158.7 million from its dial-up business.
Thanks to such success, the dial-up business continues to be one of the chief revenue streams for the company. The business still turns up nearly $500 million a year for AOL, big money which the company then goes on to spend in other ventures.
The dial-up business is shrinking, that can’t be denied. But AOL has been able to halt the speed of its decline by offering its dial-up subscribers a number of different incentives. So it will be a long while before we see the business reduced to oblivion and until then AOL will milk the cow well.
However, the company needs to make its other businesses more profitable and it needs to do that soon. Once the dial-up business goes down, it will take down a major revenue stream from AOL. And the company needs to have a back-up support in the form of other successful ventures.
Courtesy: Business Insider