Who Wants to Dump AOL More: Time Warner or AOL Users?

 

Consumers say AOL is making itself obsolete. Unlike years ago, when consumers needed hand-holding to get comfortable with even the simplest Internet features, today's consumers want a fast connection. After learning to use the Web through AOL, users learned they don't need AOL to use the Web.

Industry experts say that AOL can't just rely on its easy interface to keep customers happy. And so AOL has promised customers all kinds of content over high-speed connections, but customers already are finding features like movie trailers, online radio and community interaction for free someplace else.

Consumers say what they like most about broadband is speed, not the service or features that AOL touts. "The killer application in broadband is broadband itself," says Mark Kersey, a senior analyst with ARS, a market researcher. "There's just no evidence that consumers are willing to pay a premium for all these other features."

Or, as Lorenz said, "AOL really was like training wheels for the Internet."

Worth the Money for a Select Few

At $54.95, AOL's DSL broadband service is priced at a premium to peers, says Roger Crisman, telecommunications category director for LowerMyBills.com, which allows users to shop for broadband providers in their area. DSL service averages $50 a month and comes with some heavy upfront discounts, like Verizon's(VZ Quote) offer of the first month free and six months at a reduced $29.95 monthly rate. Cable broadband providers are even cheaper, averaging $40 a month, and while competitive at $44.95 a month, AOL's cable service is still more expensive than rivals.

For some users, AOL is worth the money. For Bryant Falk, president of Abacus Audio, a production company that works on commercials and music videos, his AOL account is indispensable even though he's already paying for broadband access through Time Warner's RoadRunner service.

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