It’s been three years since Verizon acquired AOL. In my opinion, they were acquiring an old, ailing cow with the hopes of getting milk on the cheap. A few days ago, a friend asked me if the company is still relevant in today’s technology world. I must say this triggered nostalgic tales. How many of us can remember that sweet, curiosity-arousing dial-up connection tone? AOL isn’t dead (yet) and here’s why.
- They have more than 2 million monthly active internet users
While they haven’t done a poor job staying on top of technology trends. They do know how to keep legacy clients – with my grandfather being one of them. The company is still getting most of its revenue from these dial-up subscribers. In fact, these subscribers are reducing at a rather impressive rate. I thought everyone moved to cable as soon as I did. The remaining fewer subscribers are even spending more on average. Currently, internet connections account for up to thirty percent of their yearly net revenue. If statistics are anything to go by, they’re here to stay.
- They own a major portion of today’s internet content
Even today, the company runs a profitable advertising system. It’s mostly business to business based and of the mainstream media generally. Chances are you’ve interacted with them without knowing. They’re everywhere – look at video search and targeted advertising. They’ve just rebranded. Look at the likes of Huffington Post and TechCrunch. Surprised? They even own the majority of the shares at Engadget. Five years ago, they acquired $2 Billion worth of shares in different companies. A rather smart and stealthy move if you ask me. There were even rumours that they partnered with Yahoo.
In short, AOL is here to stay. Even though they aren’t as popular as they were in the 90s, they’re still raking in big bucks.