AOHell adds blog ads–deluded users surprised

November 27, 2005 at 9:33 am (Funny Shit, Pop Culture on Parade)

from Fark

This article addresses the shock and dismay of people who have been shelling out their hard-earned sheckels to Internet Service Provider AOL at finding ads on their blogs. It seems these deluded individuals still think Uncle Hell is in business to toss their salads every time they log in, and finding ads on their blogs doesn't make them happy.

These folks sure want a lot of the wrong things for their $23.90 a month, don't they? They don't want a lot of advertising on their blogs or their other services, but they're perfectly willing to put up with the most invasive required downloads in the industry, the most restrictive access offered anywhere, massive censorship, more cookies than the Keebler hollow tree, the most difficult customer service, and the online environment least conducive to doing anything outside AOHell's realm.

What these users don't realize is that AOHell's not doing so well. They've suffered a decline in gross revenue, mostly due to offering Netscape internet access at over $10.00 less than it actually costs them to provide same.

From an article at ISP Planet:

Costs were $235 per subscriber per year or $19.62 per subscriber month. Revenues were $258 per subscriber per year or $21.52 per subscriber per month.

Even though AOL will probably eke out net profits of $740 million, that's only $22.85 per subscriber per year.

Any rise in costs or decline in revenues would hurt. Although there is no foreseen rise in costs, there is an obvious cause of declining revenues: AOL's $9.95 per month Netscape service.

Just looking at the finances, it's obvious that AOL cannot sell its cheap service the way it sells AOL because it cannot accrue costs of $19.62 per subscriber for a service that it's selling for $9.95. The company will have to use the cheaper marketing tactics that small ISPs know so well, such as radio and newspaper ads and local events.

I don't know anyone who runs a business who's willing to stick their tongue up ANY customer's ass for $22.85 a year. After all, that's a lot of tongue-shaving, even for the whores who run AOHell. That profit-per-customer figure includes their advertising revenue, so it's obvious that those little rimjobbers are far, FAR too busy licking the bungholes of their almighty advertisers to care whether or not their bread-and-butter customers object to big screaming ads flashing at the top of their blogs.

The solution here is the same as it would be for anyone dissatisfied with a given company's policies/service/prices/tonguefucking–go elsewhere, shut up and deal, or wait for the bypass hack to come out.

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