Thursday, November 16, 2006
AOL's New Business Model: Free
Free AOL Stuff, Courtesy of Bubble 2.0 - New York Times
The New York Times reports that AOL has given up on trying to be an ISP and will no longer seek out paying subscribers. The YAHOO/Google approach of free services in exchange for your attention appears to have won out.
The other issue raised in this article is the specter of another internet business bubble, leading the reader to ask: Is a crash on the horizon? Speculation is fueling this boom in start-ups like YouTube. Will the revenue from advertising alone be sufficient to meet these expectations for profit and growing revenue? Or is the business cycle of boom and bust a natural part of the this economic transformation? Long-term progress? Short-term Crash? Both?
The New York Times reports that AOL has given up on trying to be an ISP and will no longer seek out paying subscribers. The YAHOO/Google approach of free services in exchange for your attention appears to have won out.
The other issue raised in this article is the specter of another internet business bubble, leading the reader to ask: Is a crash on the horizon? Speculation is fueling this boom in start-ups like YouTube. Will the revenue from advertising alone be sufficient to meet these expectations for profit and growing revenue? Or is the business cycle of boom and bust a natural part of the this economic transformation? Long-term progress? Short-term Crash? Both?