Monday, May 18, 2015

AOL is a Lesson in Bundling

VZ is buying AOL for $4.4 Billion and getting a billion in revenue to go along with 2.2 million AOL subscribers. The service ranges from free to $27.99!!! But go look at what is included
and see if your packages don't stink in comparison. Maybe you are a purist about being an ISP -- or maybe you have considered adding anything new -- or some other reason.

Bundle includes; 15GB of storage and 50 4×6 prints per year with Photobucket; Password storage service; Legal aid; Discounted AARP membership; McAfee security suite; Computer support and repair; and dial-up.

ARPU on membership has gone up $20.83 for Q1 2015 from $19.41 for Q1 2014.

Excellent point about the dial-up business or web-hosting or some other left over service you offer: "Of course, AOL could have just given this business the finger and left it untended to wither and die. Instead, AOL has found a way to create more value for users without investing tons of money in trying to develop new services on its own."[VB]

AOL has tried other bundles -- see here and here - aimed at different targets. They keep trying. That is the key to success. Try-Fail-Learn-Try Again.

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