AOL’s content strategy is a mess, which needs to be fixed soon.
As you can see in the chart below, AOL has been buoyed by its ISP subscription business for years, but that business is dying. And fast.
In March 2007, the subscription business was generating $873 million in revenue. In the December, it was only generating $307 million.
Meanwhile, the advertising business, which is supposed to be AOL’s future, also dropped over the same time period. Display advertising ticked up slightly in the last quarter on a sequential basis.
However, it needs to show big gains if Tim Armstrong wants to keep all his new hires happy.
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