AOL’s business continued its long slide today when Time Warner reported earnings. Advertising revenue was down 18% y/y, and subscription revenue was down 29% y/y.
The bad news for AOL? Its ad revenues are tied to its sub revenues. A large chunk of AOL’s traffic comes from subscribers. As they go away, the traffic goes away. As the traffic goes away, the advertisers go away.
Good thing for Time Warner shareholders it’s spinning this basket case out in December.
Follow the Chart Of The Day on Twitter: www.twitter.com/chartoftheday
Get This Delivered To Your Inbox
You can get this dropped in your inbox every afternoon as The Chart Of The Day. It’s a simple. It’s convenient. It’s free. All we need is your email address (though we’d love your name and state, too, if you’re willing to share it). Sign up below!