Tough Times For AOL
Date 2-Feb-2003 10:52:38
Topic: Internet News
| AOL, arguably one of the UK's most annoying ISPs are finally facing tough times after the last 6 months seeing a rapid decrease in the number of subscribers.
Analysts have warned for more than a year that weakening demand for dial-up Internet access in the United States would likely cut deeply into subscriber growth at the AOL Time Warner division. Even so, it was a surprise when the company reported Wednesday a net loss of about 170,000 subscribers in the final three months of 2002 compared with the previous quarter.
The reversal, just months after the company took the wraps off the latest version of its Internet service, shows how badly AOL has faltered in the two years since the company acquired media giant Time Warner. In Wednesday's earnings statement, AOL Time Warner reported a loss on the year of $98.7 billion, attributed largely to noncash accounting charges affecting the AOL unit. In addition, it said Vice Chairman Ted Turner would retire from his post in May, when Steve Case is also stepping down as chairman.
It looks as though some people are finally discovering that there are better ISPs out there.
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