AOL
AOL Inc.
Type
Public
Traded as
NYSE: AOL
(http://www.nyse.com/about/listed/quickquote.html?
ticker=aol)
Industry
Media
Founded
Tim Armstrong
(Chairman and CEO)
Services
Online services
Revenue
Operating
income
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Since then, AOL has begun to substantially change its business model reinventing itself as a brand company
under the guidance of CEO Tim Armstrong, creating and acquiring a range of content properties. Major
acquisitions include the purchase of technology news blog TechCrunch in September 2010,[15] and on February
7, 2011, the purchase of The Huffington Post.[16] Other AOL brands include Moviefone, Engadget, Stylelist,
MapQuest and Cambio.[17]
Contents
1 History
2 Products and services
3 Corporate social responsibility
4 Criticism
5 Company purchases
6 Notable people
7 In popular culture
8 See also
9 References
10 External links
History
1980s: foundations
AOL began as a short-lived venture called
Control Video Corporation (or CVC), founded
by Bill von Meister. Its sole product was an online
service called GameLine for the Atari 2600 video
game console after von Meister's idea of buying
music on demand was rejected by Warner
Bros..[18] Subscribers bought a modem from the
company for 49.95 USD and paid a one-time
15 USD setup fee. GameLine permitted
subscribers to temporarily download games and
keep track of high scores, at a cost of 1 USD per
game. The telephone disconnected and the
downloaded game would remain in GameLine's
Master Module and playable until the user turned
off the console or downloaded another game.
The original technical team was composed of Marc
Seriff, Tom Ralston, Ken Huntsman, Janet Hunter,
Dave Brown, Steve Trus, Ray Heinrich, Mike
Ficco, Craig Dykstra, and Doug Coward.
In January 1983, Steve Case was hired as a
marketing consultant for Control Video on the
recommendation of his brother, investment banker
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1985
1988
1988
1989
September
1994
June 1995
June 1995
June 1996
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July 1998 /
June 1999
September
1999
June 2000
October and
December
2000
September
2001
October and
December
AOL 7.0 (Taz) and Refresh 1, Refresh 2,
2001, May
and Refresh 2 Plus released
and July 2002
October 2002 AOL 8.0 (Spacely) released
April 2003
August and
September
2003
May 2004
November
2004, July
2005
August 2005
to March
2006
September
2006, March
2007
November
2006, April
2007
September
2007
October 31,
2007
December
2007
May 2008
September
2008
February and
November
AOL 9.5 and 9.5 Refresh released (Classic)
2009
November
2010
December
2011
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From the beginning, AOL included online games in its mix of products; many classic and casual games were
included in the original PlayNet software system. In the early years of AOL the company introduced many
innovative online interactive titles and games, including:
Graphical chat environments Habitat (19861988) and Club Caribe (1988) from LucasArts.
The first online interactive fiction series QuantumLink Serial by Tracy Reed (1988).
Quantum Space, the first fully automated Play by email game (19891991).
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AOL was quickly running out of room in October 1996 for its network at the Fairfax County campus. In
1996,[citation needed] AOL moved to 22000 AOL Way in Dulles, unincorporated Loudoun County,
Virginia.[26] The move to Dulles took place in mid-1996 and provided room for future growth. In a five-year
landmark agreement with the most popular operating system, AOL was bundled with Windows
software.[citation needed]
On March 31, 1997, the short-lived eWorld was purchased by AOL.
AOL announced on November 24, 1998 that it would acquire Netscape. The deal closed on March 17, 1999.
In 2004, along with the launch of AOL 9.0 Optimized, AOL also
made available the option of personalized greetings which would
enable the user to hear his or her name while accessing basic functions and mail alerts, or while logging in or out.
In 2005, AOL broadcast the Live 8 concert live over the Internet, and thousands of users downloaded clips of
the concert over the following months.[citation needed] In late 2005, AOL released AOL Safety & Security
Center,[citation needed] a bundle of McAfee anti-virus, CA anti-spyware, and proprietary firewall and phishing
protection software. News reports in late 2005 identified companies such as Yahoo!, Microsoft, and Google as
candidates for turning AOL into a joint venture;[27] those plans were apparently abandoned when it was
revealed on December 20, 2005 that Google would purchase a 5% share of AOL for $1 billion.
On April 3, 2006, AOL announced that it was retiring the full name "America Online"; the official name of the
service became "AOL", and the full name of the Time Warner subdivision became "AOL, LLC".[28]
On June 8, 2006,[29] AOL offered a new program called AOL Active Security Monitor, a diagnostic tool that
checked the local PC's security status, and recommended additional security software from AOL or
Download.com. The program rated the computer on a variety of different areas of security and general
computer health. Two months later,[30] AOL released AOL Active Virus Shield. This software was developed
by Kaspersky Lab. Active Virus Shield software was free and did not require an AOL account, only an internet
email address. The ISP side of AOL UK was bought by The Carphone Warehouse in October 2006 to take
advantage of their 100,000 LLU customers, making The Carphone Warehouse the biggest LLU provider in the
UK.[31]
On August 2006, AOL announced that they would give away email accounts and software previously available
only to its paying customers provided the customer accessed AOL or AOL.com through a non-AOL-owned
access method (otherwise known as "third party transit", "bring your own access", or "BYOA"). The move was
designed to reduce costs associated with the "Walled Garden" business model by reducing usage of AOLowned access points and shifting members with high-speed internet access from client-based usage to the more
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lucrative advertising provider, AOL.com.[32] The change from paid to free was also designed to slow the rate of
members canceling their accounts and defecting to Microsoft Hotmail, Yahoo!, or other free email providers.
The other free services included:[33]
AIM (AOL Instant Messenger)
AOL Video[34] featured professional content and allowed users to upload videos as well.
AOL Local, comprising its CityGuide,[35] Yellow Pages[36] and Local Search[37] services to help users
find local information like restaurants, local events, and directory listings.
AOL News
AOL My eAddress, a custom domain name for email addresses. These email accounts could be
accessed in a manner similar to other AOL and AIM email accounts.
Xdrive, which was a service offered by AOL that allowed users to back up their files over the
Internet.[38] It was acquired by AOL on August 3, 2005 and closed on January 12, 2009.[39] It offered a
free 5 GB account (free online file storage) to anyone with an AOL screenname.[38] Xdrive also provided
remote backup services and 50GB of storage for a $9.95 per month fee.[38]
According to AOL CEO Randy Falco, as of December 2007, the conversion rate of accounts from paid access
to free access was over 80%.[40] Later in August 2006, AOL informed its American customers that it would be
increasing the price of its dial-up access to US$25.90. The increase was part of an effort to migrate the service's
remaining dial-up users to broadband, as the increased price was the same price they had been charging for
monthly DSL access.[41] However, AOL has since started offering their services for $9.95 a month for unlimited
dial-up access.[42]
On September 17, 2007, AOL announced that it was moving one of its corporate headquarters from Dulles,
Virginia, to New York City[43] and combining its various advertising units into a new subsidiary called Platform
A. This action followed several advertising acquisitions, most notably Advertising.com, and highlighted the
company's new focus on advertising-driven business models. AOL management stressed that "significant
operations" will remain in Dulles, which included the company's access services and modem banks.
In October 2007, AOL announced that it would move one of its other headquarters from Loudoun County,
Virginia, to New York City; it would continue to operate its Virginia offices.[7] As part of the impending move
to New York and the restructuring of responsibilities at the Dulles headquarters complex after the Reston move,
AOL CEO Randy Falco announced on October 15, 2007 plans to lay off 2000 employees worldwide by the
end of 2007, beginning "immediately".[44] The end result was a near 40% layoff across the board at AOL. Most
compensation packages associated with the October 2007 layoffs included a minimum of 120 days of
severance pay, 60 of which were given in lieu of the 60-day advance notice requirement by provisions of the
1988 Federal WARN Act.[44]
By November 2007, AOL's customer base had been reduced to 10.1 million subscribers,[45] just narrowly
ahead of Comcast and AT&T Yahoo!.
On January 3, 2008, AOL announced the closing one of its three Northern Virginia data centers, Reston
Technology Center, and sold it to CRG West.[46]
On February 6, 2008, Time Warner CEO Jeff Bewkes announced that Time Warner would split AOL's internet
access and advertising businesses into two, with the possibility of later selling the internet access division.[47]
On March 13, 2008, AOL purchased the social networking site Bebo for $850m (417m).[48] On July 25,
2008, AOL announced it was shedding Xdrive, AOL Pictures, and BlueString to save on costs and focus on its
core advertising business.[49] AOL Pictures was terminated on December 31, 2008. On October 31, 2008,
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AOL Hometown (a web hosting service for the websites of AOL customers) and the AOL Journal blog hosting
service were eliminated,[50] after first announcing the impending shutdown on September 30, 2008.[51]
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the participating sites digital video offerings. The Digital Content NewFronts were conducted in advance of the
traditional television upfronts in hopes of diverting more advertising money into the digital space.[71] On April
24, 2012, the company launched the AOL On network, a single web site for its video output.[72]
In February 2013, AOL reported its fourth quarter revenue of $599.5 million, its first growth in quarterly
revenue in 8 years.[73]
In August 2013, Armstrong announced Patch Media would scale back or sell hundreds of its local news
sites.[74] Not long afterwards, layoffs began, with up to 500 out of 1,100 positions impacted.[75] On January
15, 2014, Patch Media was spun off, with majority ownership being held by Hale Global.[76]
Content
AOLs Huffington Post Media Group (HPMG) is a source of news, opinion, entertainment, community and
digital information. The Group is a diverse network of sites including the Huffington Post, Moviefone, Engadget,
TechCrunch, gdgt, and Stylelist, which combine reposting, technology, engagement, and video to reach a global
audience on every platform. The Group has over 20,000 bloggers, including politicians, celebrities, academics
and policy experts, who contribute on a wide range of topics making news.[77] The Groups video is collected
on its AOL On site, which offers channels in News, Entertainment, Style, Tech, Business, Food, Home, Travel,
Health, Autos, Parenting, Relationships, Video Games and Pets.[78]
Advertising
AOL Advertising AOL Advertising offers advertisers, agencies and publishers access to AOLs online
advertising tools, and the ability to advertise on the original brands available through the AOL Huffington
Post Media Group.
Advertising.com AOLs ad network, Advertising.com, helps advertisers reach highly targeted
audiences at scale, and helps publishers increase revenue. Advertising.com utilizes AdLearn, an advanced
optimization and bid management system. AdLearn processes up to 10 billion transactions per day.
AOL Advertising.com Group The AOL Advertising.com Group comprises eight businesses:
Advertising.com, ADTECH, AOL On Network, Be On, Pictela, Studio Now, 5min Media and
Sponsored Listings.
ADTECH ADTECH's integrated ad serving solutions enable web publishers, ad networks, agencies
and advertisers to manage, serve and report on their online advertising campaigns including display,
video and mobile formats.
AOL On Network The AOL On Network comprises 14 curated video channels. It features original
series by AOL Studios and other production houses, and a library of content from AOL partners. The
site is refreshed with content surrounding breaking stories and trending topics. AOL On also features the
custom playlists of celebrity curators.
5min Media 5min Media offers publishers access to a curated video library, white-label player and
proprietary technology that allows them to integrate 5min Medias videos across their sites to reach and
engage with targeted audiences.
Be On Be On distributes branded video content on a pay-for-performance basis.
Pictela Pictela is an award-winning,[79] high-definition global content marketing platform for serving and
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distributing brand content across online advertising and social media. The Pictela platform powers the
backend of AOL Premium Formats.
StudioNow StudioNow works with businesses to create, produce and distribute affordable custom
video that's hyperlocal, high-quality and scaled to their needs.
Sponsored Listings The Advertising.com Sponsored Listings network includes AOL Media properties
and many of the web's top sites. The network is pay-per-click and enables advertisers to target ads by
content and by audience.[80]
Local
AOL provides local content, platforms and services covering geographic levels ranging from neighborhoods to
major metropolitan areas. This local content includes professional editorial content, user-generated content and
business listings. AOLs local brands include MapQuest, the second-largest online mapping company, operating
at 44-percent market share; and a minority holding in Patch, a platform of hyperlocal news and information sites
managed by professional local journalists and photographers.
AOL membership
AOL offers a range of integrated products and properties including communication tools, mobile services and
subscription packages that drive traffic and user engagement across the AOL network.
Mobile AOL Mobile includes applications and mobile web experiences for existing AOL properties
like Moviefone, Shoutcast, TechCrunch, AIM, MapQuest, and products such as Engadget Distro,
Editions by AOL, Play by AOL Music and Huffington Magazine.
AOL Mail AOL Mail is AOLs proprietary email client. It is fully integrated with AIM and links to
news headlines on AOL content sites.
AIM AIM is AOLs proprietary instant-messaging tool. It also comprises a video-chat service, AV by
AIM.
About.me About.me enables users to bring in multiple online profiles from various services into one
online identity.
Lifestore.com Lifestore.com provides products and services including PC utilities, tech support, online
learning, and diet and fitness programs.[81]
Ventures
AOL Ventures is the venture capital arm of AOL, investing in early-stage technology-centric consumer Internet
companies.[82]
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AOL properties; donating PSA campaigns throughout the AOL network; empowering consumers through
cause-related contests and initiatives; implementing a permanent cause module on AOLs homepage, dedicated
to promoting a different nonprofit daily; and advocating for internet safety through its blog SafetyClicks.com.[86]
Criticism
Main article: Criticism of AOL
In its earlier incarnation as a walled garden community and service provider, AOL received criticism for its
community policies, terms of service, and customer service. Prior to 2006, AOL was known for its direct
mailing of CD-ROMs and 3" floppy disks containing its software. The disks were distributed in large numbers;
at one point, half of the CDs manufactured worldwide had AOL logos on them.[87] The marketing tactic was
criticized for its environmental cost, and AOL CDs were recognized as PCWorlds most annoying tech
product.[88][89]
Company purchases
Main article: List of acquisitions by AOL
Notable people
Marc Andreessen (Netscape co-founder and AOL Chief Technology Officer)[90][91]
Jim Barksdale (former director)[92]
John Barnes (former head researcher)
Randall Boe (Executive Vice President and General Counsel)[93]
Jason Calacanis (former CEO of Weblogs, Inc. and former GM of Netscape)[94]
Steve Case (former CEO and Board Chairman, married Jean Villanueva in 1998)[95]
Mary Cheney (former Vice President for Consumer Advocacy)[96]
Elwood Edwards (Voice actor for "You've got Mail")[97]
Randy Falco (former CEO and Board Chairman)[98]
Justin Frankel (Nullsoft founder)[99]
Maureen Govern (former CTO)[100]
Ron Grant (former President and COO)[101]
Alexander Haig (former Director)[102]
Michael Jones (former CEO of Userplane)[103]
Jim Kimsey (former CEO and Board Chairman)[104]
Ted Leonsis (Vice Chairman, President AOL Audience Group)[105]
Gerry Campbell (former Senior Vice President, AOL Search)[106]
Joanna Lumley (UK voice for "You've got post.")[107]
Jonathan Miller (former CEO and Board Chairman)[108]
Robert W. Pittman (former President)[109]
Michael Powell (involved during merge with Time Warner)[110]
Barry Schuler (former CEO)[111]
Marc Seriff (former CTO)
Jean Villanueva (former Vice President of Corporate Communications, married Steve Case in 1998)
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In popular culture
America Online is mentioned in You've Got Mail. The You've Got Mail voice was also heard in the AOL
Demo video.
In episode 120 ("Tiki Lounge") of Malcolm in the Middle, Malcolm complains that the booster club auction
items are all embarrassingly worthless. One of the items in the auction was an AOL startup disc. This was
probably a reference to the high volume of startup discs given out by the company (see also Urban Dictionary
AOL Disc (http://www.urbandictionary.com/define.php?term=AOL%20Disc), AOL Frisbee
(http://www.urbandictionary.com/define.php?term=AOL%20Frisbee), and related terms).
In the American comedy TV show Crank Yankers, one of the show's puppet characters Special Ed (voiced by
Jim Florentine) tries to get customer support from a computer repair company, repeatedly saying the AOL
catchphrase "I've got mail, YAY!" throughout his prank phone call. The routine has become somewhat of an
internet sensation, contributing to the popularity of the Special Ed character.
See also
.art
AOL Explorer
AOL Instant Messenger
AOL Mail
AOL Radio
AOHell
Comparison of webmail providers
Criticism of AOL
Dot-com bubble
Inside-AOL.com
Live365
Sessions@AOL
Truveo
References
1. ^ America, Online! (http://www.wired.com/wired/archive/3.09/aol.html). Wired.com (January 4, 2009).
Retrieved on July 8, 2011.
2. ^ [1] (http://o.aolcdn.com/os/portal/launch/welcomef.html). AOL.com (December 10, 2009). Retrieved on
May 23, 2013.
3. ^ a b c d e f "AOL 2012 Annual Report, Form 10-K, Filing Date Feb 24, 2012"
(http://edgar.secdatabase.com/908/119312513084847/filing-main.htm). secdatabase.com. Retrieved August 28,
2013.
4. ^ Lunden, Ingrid. "AOL Reorganizes Into Membership, Brand And Ad Units [Incl Armstrong's Memo]"
(http://techcrunch.com/2012/06/29/aol-reorganizes-into-membership-brand-and-ad-units-incl-armstrongsmemo/). TechCrunch. Retrieved 6/29/12.
5. ^ "International Services About AOL" (http://about.aol.com/international_services).
6. ^ "Company Overview" (http://corp.aol.com/about-aol/company-overview). aol.com. Retrieved May 7, 2009.
7. ^ a b Goldfarb, Zachary and Sam Diaz (September 18, 2007). "AOL Moving Executives, Headquarters to New
York" (http://www.washingtonpost.com/wp-dyn/content/article/2007/09/17/AR2007091700415.html). The
Washington Post. Retrieved May 7, 2009.
8. ^ "AOL News Release November 6th, 2012" (http://phx.corporate-ir.net/External.File?
http://en.wikipedia.org/wiki/AOL
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9.
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29.
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94.
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111.
External links
Official website (http://corp.aol.com/)
Nieman Journalism Lab. "AOL" (http://www.niemanlab.org/encyclo/aol). Encyclo: an encyclopedia of
the future of news. Retrieved 1 April 2012.
AOL (https://web.archive.org/web/19961220154903/http://www.aol.com/index.jsp) at the Wayback
Machine (archived December 20, 1996)
Retrieved from "http://en.wikipedia.org/w/index.php?title=AOL&oldid=602368580"
Categories: AOL Companies based in Dulles, Virginia Companies based in New York City
Companies established in 2009 Companies established in 1983
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Companies listed on the New York Stock Exchange Online service providers
Internet service providers of the United States Internet services supporting OpenID
Former Time Warner subsidiaries Web service providers PreWorld Wide Web online services
Companies in the PRISM network 1983 establishments in the United States
Companies initially financed with venture capital
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