AOL Confirms Free E-Mail Offer
AOL, the beleaguered online unit of Time Warner, confirmed in its earnings report Wednesday it is giving free e-mail service to subscribers to any broadband service.
The offer-an attempt to beef up its one bright spot: ad revenue-is good beginning in September.
The company also said that people who have left the service during the last two years could get their old e-mail addresses back free.
AOL reported its second quarter revenue had declined 2% or $51 million as a result of subscriber defections and higher traffic acquisition costs. The loss was partially offset by a 40%, or $129 million increase in ad revenue.
As of June 30, AOL reported, it had 17.7 million U.S. subscribers, down 976,000 from the previous quarter, and off 3.1 million from the previous year. At AOL’s peak in 2002, it had more than 35 million subscribers.
AOL in June began for the first time in its history, serving banner ads along with e-mail to paid subscribers. The banners cut the viewing screen by a third. Sponsors so far include EBay and LowerMyBills.com.
Between the ads and AOL
