Poll: Majority of users plan to quit AOL

Zardon · May 21, 2002, 07:09 PM

Nearly 60 percent of Web surfers polled by ChangeWave, an investment and research firm whose clients include hedge funds, said Tuesday they planned to leave America Online for another Internet service.

The findings of this survey point to a serious and ongoing hemorrhaging of AOL's Internet subscriber base. Among members using AOL as their Internet Service Provider, two out of five rate it unsatisfactory -- by far the highest negative rating of any major ISP specified in the survey," the report said.

The survey comes at a time when AOL Time Warner Inc.'s management is struggling to get the online service "back on track" as it suffers from an anemic advertising climate and slower growth in its dial-up subscriber base.

Of the 402 respondents in the survey, 73 percent were still subscribers and 27 percent had left AOL in the past year.

About 40 percent said they were clearly dissatisfied with the brand, service and customer support. Some members resented the relatively high cost of $23.90 for the service, the report said.

However, 8 percent said a reason for keeping the service was AOL's content, which has been expanded to include everything from CNN and "The Sopranos" to People magazine and music artists like Madonna and Enya, since the completion of AOL's purchase of Time Warner.

"We have done more than 100 surveys and reports since late 2000 and this survey has the most overwhelming, and negative, response to a company or technology we have ever seen," said Michael Shulman, director of research at ChangeWave, in a research note.

ChangeWave said the situation will worsen as Web surfers move toward high-speed Internet services.

"With roughly half of all those seeking broadband committed to leaving AOL, the company is facing a 10 percent to 25 percent drop per year in its core customer base. Simply put, it is open season on AOL subscribers," the report said.

The company's shares have fallen about 40 percent this year and lost about 70 percent of its market value since AOL agreed to buy Time Warner for $106.2 billion in January 2000. Management has pledged to regain investor credibility and rebuild value, but most investors are waiting on the sidelines to see if the company can win back their trust.

AOL shares fell 20 cents to $19.19 on the New York Stock Exchange at midday.

AOL Time Warner's new chief executive officer, Richard Parsons, has made getting the online unit "back on track" a top priority and has dispatched Chief Operating Officer Robert Pittman to refocus the unit on the basics.

The company has also acknowledged that it needs to clarify its high-speed strategy but has downplayed the urgency after getting into high-speed services, noting that the mass market is unlikely to embrace broadband overnight.

Reuters

brc64 · May 21, 2002, 07:17 PM

People stay with AOL for the content, eh? Are they not aware that most of the stuff that AOL has to offer can be found WITHOUT AOL? I just hope that they don't start charging people to use AOL Instant Messenger if they start losing lots of customers.

- Me

Arikel · May 21, 2002, 08:45 PM

Cool, people are smartening up. AOL's only real strength is that it's easy for people who don't know anything about the internet to learn to use it, and people in general seem much more internet-savvy these days.

Impulse · May 21, 2002, 10:10 PM

[SIZE=small]Whats there to like about AOL?... I hate them[/SIZE]

UberLord · May 22, 2002, 09:35 AM

Quote:

Originally posted by Impulse
[SIZE=small]Whats there to like about AOL?... I hate them[/SIZE]

When even worse is that their "face" in the UK (you know, that annoying girl with the "wearable" browser) isn't even that attractive!

AlternateVirus · May 22, 2002, 11:58 PM

good, i hate aol.

Impulse · May 23, 2002, 01:11 AM

[SIZE=small]Enough said...[/SIZE]

EvilFoo · May 23, 2002, 02:40 PM

Bah, those AOL commercials anger me... I just want to punch those idiots in the face who say "AOL is GREAT! SUPER!", etc. and then how some of the people brag about having WebMD and AOL IM, um.. hello? That crap is available anywhere, it's not AOL exclusive! UGH! Propaganda at its worst...

brc64 · May 23, 2002, 05:12 PM

It has become my natural instinc to hit the MUTE button as soon as I hear an AOL commercial come on.

- Me

May 21, 2002, 07:09 PM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 179	Poll: Majority of users plan to quit AOL Nearly 60 percent of Web surfers polled by ChangeWave, an investment and research firm whose clients include hedge funds, said Tuesday they planned to leave America Online for another Internet service. The findings of this survey point to a serious and ongoing hemorrhaging of AOL's Internet subscriber base. Among members using AOL as their Internet Service Provider, two out of five rate it unsatisfactory -- by far the highest negative rating of any major ISP specified in the survey," the report said. The survey comes at a time when AOL Time Warner Inc.'s management is struggling to get the online service "back on track" as it suffers from an anemic advertising climate and slower growth in its dial-up subscriber base. Of the 402 respondents in the survey, 73 percent were still subscribers and 27 percent had left AOL in the past year. About 40 percent said they were clearly dissatisfied with the brand, service and customer support. Some members resented the relatively high cost of $23.90 for the service, the report said. However, 8 percent said a reason for keeping the service was AOL's content, which has been expanded to include everything from CNN and "The Sopranos" to People magazine and music artists like Madonna and Enya, since the completion of AOL's purchase of Time Warner. "We have done more than 100 surveys and reports since late 2000 and this survey has the most overwhelming, and negative, response to a company or technology we have ever seen," said Michael Shulman, director of research at ChangeWave, in a research note. ChangeWave said the situation will worsen as Web surfers move toward high-speed Internet services. "With roughly half of all those seeking broadband committed to leaving AOL, the company is facing a 10 percent to 25 percent drop per year in its core customer base. Simply put, it is open season on AOL subscribers," the report said. The company's shares have fallen about 40 percent this year and lost about 70 percent of its market value since AOL agreed to buy Time Warner for $106.2 billion in January 2000. Management has pledged to regain investor credibility and rebuild value, but most investors are waiting on the sidelines to see if the company can win back their trust. AOL shares fell 20 cents to $19.19 on the New York Stock Exchange at midday. AOL Time Warner's new chief executive officer, Richard Parsons, has made getting the online unit "back on track" a top priority and has dispatched Chief Operating Officer Robert Pittman to refocus the unit on the basics. The company has also acknowledged that it needs to clarify its high-speed strategy but has downplayed the urgency after getting into high-speed services, noting that the mass market is unlikely to embrace broadband overnight. Reuters

May 23, 2002, 01:11 AM	#7
Impulse l33t Join Date: May 2002 Posts: 248 Rep Power: 0	WE ALL HATE AOL!!!!!!!!!!! [SIZE=small]Enough said...[/SIZE]

May 23, 2002, 02:40 PM	#8
EvilFoo DriverHeaven Junior Member Join Date: May 2002 Posts: 94 Rep Power: 0	Bah, those AOL commercials anger me... I just want to punch those idiots in the face who say "AOL is GREAT! SUPER!", etc. and then how some of the people brag about having WebMD and AOL IM, um.. hello? That crap is available anywhere, it's not AOL exclusive! UGH! Propaganda at its worst... __________________ The MSN8 Butterfly is a pedophile. "For a long time it gave me nightmares... witnessing an injustice like that... it's a constant reminder of just how unfair this world can be... I can still hear them taunting him... Silly Rabbit, Trix are for Kids... I mean, WHY COULDN'T THEY JUST GIVE HIM SOME CEREAL!?!" -C

May 21, 2002, 07:17 PM	#2
brc64 Zeeky H. Bomb Join Date: May 2002 Location: Evansville, IN Posts: 826 Rep Power: 0	People stay with AOL for the content, eh? Are they not aware that most of the stuff that AOL has to offer can be found WITHOUT AOL? I just hope that they don't start charging people to use AOL Instant Messenger if they start losing lots of customers. - Me

May 21, 2002, 08:45 PM	#3
Arikel DriverHeaven Lover Join Date: May 2002 Posts: 225 Rep Power: 0	Cool, people are smartening up. AOL's only real strength is that it's easy for people who don't know anything about the internet to learn to use it, and people in general seem much more internet-savvy these days.

May 21, 2002, 10:10 PM	#4
Impulse l33t Join Date: May 2002 Posts: 248 Rep Power: 0	[SIZE=small]Whats there to like about AOL?... I hate them[/SIZE]

May 22, 2002, 11:58 PM	#6
AlternateVirus DriverHeaven Addict Join Date: May 2002 Posts: 282 Rep Power: 0	good, i hate aol.

May 23, 2002, 05:12 PM	#9
brc64 Zeeky H. Bomb Join Date: May 2002 Location: Evansville, IN Posts: 826 Rep Power: 0	It has become my natural instinc to hit the MUTE button as soon as I hear an AOL commercial come on. - Me