Skip to content
Technology & Innovation

How Does AOL Still Have 2.3 Million Dial-Up Internet Customers?

A new report from Independent reveals that, despite attempts to rebrand itself, AOL still makes more money selling dial-up than by selling ads.
Sign up for The Nightcrawler Newsletter
A weekly collection of thought-provoking articles on tech, innovation, and long-term investing from Nightview Capital’s Eric Markowitz.

What’s the Latest?


A new report from Independent reveals that, despite attempts to rebrand itself, AOL still makes more money selling dial-up than through selling ads. The company’s estimated 2.3 million customers who still use internet from the Paleozoic Era pay an average of $21 per month for the privilege of not being able to do much of anything online. That equals out to a healthy $155 million in revenue for AOL just from dial-up services, $11 million more than the company makes for advertisements.

What’s the Big Idea?

The real $155 million question is who in their right mind still pays for dial-up? The Independent article speculates that AOL’s lasting success can be attributed to the technological ignorance of customers as well as the company’s strong marketing campaign from the late 90s (remember these?). AOL’s dial-up service operates with very low overhead; their revenue represents continuing residuals from an investment made two decades prior and, as baffling as it sounds, is still quite profitable.

Keep reading at Independent

Photo credit: Mauro Saivezzo / Shutterstock


Related

Up Next