Free is a Lousy Business Model


	Free is a Lousy Business Model

muckdog

8-2-2007 2:04 AM

353 views

tags:

aol

muckdog says:

Can't make "free" up on volume...

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/d7e880a7-655f-414f-a09c-94820ca534b2/6D7E7DCF-3549-472B-A198-728DEEF8C71D/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.iht.com/articles/2007/08/01/business/warner.php" href="http://www.iht.com/articles/2007/08/01/business/warner.php" style="font-size: 11px;">www.iht.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.iht.com/articles/2007/08/01/business/warner.php"><P><STRONG>NEW YORK:</STRONG> Time Warner said Wednesday that second-quarter profit had gained 5.2 percent on higher cable revenue, but shares dipped after sales at the AOL Internet unit plunged 38 percent.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.iht.com/articles/2007/08/01/business/warner.php"><P>AOL reported its worst sales drop since adopting a strategy last year to replace paid subscribers with free e-mail messages and advertising. Revenue from divisions that include the Warner Bros. studios and the HBO cable network also declined.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.iht.com/articles/2007/08/01/business/warner.php"><P>To counter declining Internet-access subscribers, AOL started offering e-mail and other services for free last year to lure users and advertisers. Parsons, 59, hired an NBC veteran, Randy Falco, as chief executive of AOL in November to carry out the free-service strategy. The division, based in Dulles, Virginia, has since upgraded products such as its instant messaging service.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/6D7E7DCF-3549-472B-A198-728DEEF8C71D/blog/" title="blog or email this clip"><img src="http://content7.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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