9/19/2006

AOL gains more new customers after going free

Filed under: — By Aviran Mordo @ 4:50 pm

Time Warner Inc. on Tuesday said a strategy to offer most of online unit AOL’s services for free was making faster-than-expected progress in attracting new Internet users and cutting costs.

Jeffrey Bewkes, Time Warner’s chief operating officer, told investors at a Goldman Sachs media conference that its strategy had attracted new users beyond those who were once paying customers of the online service.

Some 40 percent of new users were not former subscribers, Bewkes said. “That means there is demand for AOL beyond the existing base,” he said.

In addition, subscribers who formerly paid for AOL services were moving to its free services at a quicker rate than originally predicted by AOL management, Bewkes said.

Source: Reuters

 

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