AOL (stylized as Aol., formerly a company known as AOL Inc. and originally known as America Online) is an American
web portal
A web portal is a specially designed website that brings information from diverse sources, like emails, online forums and search engines, together in a uniform way. Usually, each information source gets its dedicated area on the page for displayin ...
and
online service provider
An online service provider (OSP) can, for example, be an Internet service provider, an email provider, a news provider (press), an entertainment provider (music, movies), a search engine, an e-commerce site, an online banking site, a health site, ...
based in New York City. It is a brand marketed by the current incarnation of Yahoo! Inc.
The service traces its history to an online service known as
PlayNET
PlayNet (or PlayNET) was an American online service for Commodore 64 personal computers that operated from 1984 to 1987. It was operated by the PlayNet, Inc of Troy, New York.
History
PlayNet was founded in 1983 by two former GE Global Research ...
. PlayNET licensed its software to
Quantum Link
Quantum Link (or Q-Link) was an American and Canadian online service for the Commodore 64 and 128 personal computers that operated starting November 5, 1985. It was operated by Quantum Computer Services of Vienna, Virginia, which later became ...
(Q-Link), who went online in November 1985. A new
IBM PC
The IBM Personal Computer (model 5150, commonly known as the IBM PC) is the first microcomputer released in the IBM PC model line and the basis for the IBM PC compatible de facto standard. Released on August 12, 1981, it was created by a team ...
client launched in 1988, eventually renamed as America Online in 1989. AOL grew to become the largest online service, displacing established players like
CompuServe
CompuServe (CompuServe Information Service, also known by its initialism CIS) was an American online service provider, the first major commercial one in the world – described in 1994 as "the oldest of the Big Three information services (the oth ...
and
The Source
''The Source'' is an American hip hop and entertainment website, and a magazine that publishes annually or . It is the world's longest-running rap periodical, being founded as a newsletter in 1988 by Jonathan Shecter. David Mays was the ma ...
. By 1995, AOL had about three million active users.
AOL was one of the early pioneers of the Internet in the mid-1990s, and the most recognized brand on the web in the United States. It originally provided a dial-up service to millions of Americans, pioneered
instant messaging
Instant messaging (IM) technology is a type of online chat allowing real-time text transmission over the Internet or another computer network. Messages are typically transmitted between two or more parties, when each user inputs text and trigge ...
, and in 1993 began adding internet access. In 1998, AOL purchased
Netscape
Netscape Communications Corporation (originally Mosaic Communications Corporation) was an American independent computer services company with headquarters in Mountain View, California and then Dulles, Virginia. Its Netscape web browser was onc ...
for $4.2 billion. In 2001, at the height of its popularity, it purchased the media conglomerate
Time Warner
Warner Media, LLC ( traded as WarnerMedia) was an American multinational mass media and entertainment conglomerate. It was headquartered at the 30 Hudson Yards complex in New York City, United States.
It was originally established in 1972 by ...
in the largest merger in U.S. history. AOL rapidly shrank thereafter, partly due to the decline of dial-up and rise of
broadband
In telecommunications, broadband is wide bandwidth data transmission which transports multiple signals at a wide range of frequencies and Internet traffic types, that enables messages to be sent simultaneously, used in fast internet connections. ...
. AOL was eventually spun off from Time Warner in 2009, with
Tim Armstrong
Timothy Ross Armstrong (born November 25, 1965) is an American musician, singer, songwriter and producer. Known for his distinctive voice, he is the singer/guitarist for the punk rock band Rancid and hip hop/punk rock supergroup Transplants. ...
appointed the new CEO. Under his leadership, the company invested in media brands and advertising technologies.
On June 23, 2015, AOL was acquired by
Verizon Communications
Verizon Communications Inc., commonly known as Verizon, is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas i ...
for $4.4 billion. On May 3, 2021, Verizon announced it would sell Yahoo and AOL to private equity firm
Apollo Global Management
Apollo Global Management, Inc. is an American global private-equity firm. It provides investment management and invests in credit, private equity, and real assets. As of March 31, 2022, the company had $512 billion of assets under management, ...
for $5 billion.
History
1983–1991: Early years
AOL began in 1983, as a short-lived venture called Control Video Corporation (or CVC), founded by William von Meister. Its sole product was an online service called
GameLine
GameLine was a dialup game distribution service for the Atari 2600, developed and operated by Control Video Corporation (CVC). Subscribers could install the proprietary modem and storage cartridge in their home game console, accessing the GameLin ...
for the
Atari 2600
The Atari 2600, initially branded as the Atari Video Computer System (Atari VCS) from its release until November 1982, is a home video game console developed and produced by Atari, Inc. Released in September 1977, it popularized microprocessor- ...
video game console
A video game console is an electronic device that Input/output, outputs a video signal or image to display a video game that can be played with a game controller. These may be home video game console, home consoles, which are generally placed i ...
, after von Meister's idea of buying music on demand was rejected by
Warner Bros.
Warner Bros. Entertainment Inc. (commonly known as Warner Bros. or abbreviated as WB) is an American film and entertainment studio headquartered at the Warner Bros. Studios complex in Burbank, California, and a subsidiary of Warner Bros. D ...
Subscribers bought a
modem
A modulator-demodulator or modem is a computer hardware device that converts data from a digital format into a format suitable for an analog transmission medium such as telephone or radio. A modem transmits data by Modulation#Digital modulati ...
from the company for US$49.95 and paid a one-time US$15 setup fee. GameLine permitted subscribers to temporarily download games and keep track of high scores, at a cost of US$1 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.
In January 1983, Steve Case was hired as a marketing consultant for Control Video on the recommendation of his brother, investment banker Dan Case. In May 1983, Jim Kimsey became a manufacturing consultant for Control Video, which was near bankruptcy. Kimsey was brought in by his West Point friend
Frank Caufield Frank J. Caufield (1939 – November, 2019) was a co-founder and named partner of the venture capital firm Kleiner Perkins Caufield & Byers, based in Menlo Park, California.
From 1973 to 1978, Caufield was a general partner and manager of Oak Grov ...
, an investor in the company. In early 1985, von Meister left the company.
On May 24, 1985, Quantum Computer Services, an online services company, was founded by Jim Kimsey from the remnants of Control Video, with Kimsey as
chief executive officer
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
, and
Marc Seriff Marc S. Seriff (born May 5, 1948 in Austin, Texas) is best known as the CTO and co-founder of America Online, along with Jim Kimsey (CEO), Steve Case, and William von Meister (as Control Video Corporation).
Biography
Seriff received his B.S. in Ma ...
Marc Seriff Marc S. Seriff (born May 5, 1948 in Austin, Texas) is best known as the CTO and co-founder of America Online, along with Jim Kimsey (CEO), Steve Case, and William von Meister (as Control Video Corporation).
Biography
Seriff received his B.S. in Ma ...
, Tom Ralston, Ray Heinrich, Steve Trus, Ken Huntsman, Janet Hunter, Dave Brown, Craig Dykstra, Doug Coward, and Mike Ficco. In 1987, Case was promoted again to executive vice-president. Kimsey soon began to groom Case to take over the role of CEO, which he did when Kimsey retired in 1991.
Kimsey changed the company's strategy, and in 1985, launched a dedicated online service for
Commodore 64
The Commodore 64, also known as the C64, is an 8-bit home computer introduced in January 1982 by Commodore International (first shown at the Consumer Electronics Show, January 7–10, 1982, in Las Vegas). It has been listed in the Guinness ...
Quantum Link
Quantum Link (or Q-Link) was an American and Canadian online service for the Commodore 64 and 128 personal computers that operated starting November 5, 1985. It was operated by Quantum Computer Services of Vienna, Virginia, which later became ...
("Q-Link" for short). The Quantum Link software was based on software licensed from PlayNet, Inc, (founded in 1983 by Howard Goldberg and Dave Panzl). The service was different from other online services as it used the computing power of the Commodore 64 and the
Apple II
The Apple II (stylized as ) is an 8-bit home computer and one of the world's first highly successful mass-produced microcomputer products. It was designed primarily by Steve Wozniak; Jerry Manock developed the design of Apple II's foam-m ...
rather than just a "dumb" terminal. It passed tokens back and forth and provided a fixed price service tailored for home users. In May 1988, Quantum and
Apple
An apple is an edible fruit produced by an apple tree (''Malus domestica''). Apple fruit tree, trees are agriculture, cultivated worldwide and are the most widely grown species in the genus ''Malus''. The tree originated in Central Asia, wh ...
launched
AppleLink
AppleLink was the name of both Apple Computer's online service for its dealers, third-party developers, and users, and the client software used to access it. Prior to the commercialization of the Internet, AppleLink was a popular service for Mac ...
Personal Edition for
Apple II
The Apple II (stylized as ) is an 8-bit home computer and one of the world's first highly successful mass-produced microcomputer products. It was designed primarily by Steve Wozniak; Jerry Manock developed the design of Apple II's foam-m ...
and
Macintosh
The Mac (known as Macintosh until 1999) is a family of personal computers designed and marketed by Apple Inc., Apple Inc. Macs are known for their ease of use and minimalist designs, and are popular among students, creative professionals, and ...
computers. In August 1988, Quantum launched PC Link, a service for IBM-compatible PCs developed in a joint venture with the
Tandy Corporation
Tandy Corporation was an American family-owned leather goods company based in Fort Worth, Texas, United States. Tandy Leather was founded in 1919 as a leather supply store. By the end of the 1950s, under the tutelage of then-CEO Charles Tandy, ...
. After the company parted ways with Apple in October 1989, Quantum changed the service's name to America Online. Case promoted and sold AOL as the online service for people unfamiliar with computers, in contrast to
CompuServe
CompuServe (CompuServe Information Service, also known by its initialism CIS) was an American online service provider, the first major commercial one in the world – described in 1994 as "the oldest of the Big Three information services (the oth ...
, which was well established in the technical community.
From the beginning, AOL included
online game
An online game is a video game that is either partially or primarily played through the Internet or any other computer network available. Online games are ubiquitous on modern gaming platforms, including PC game, PCs, Console game, consoles and ...
s 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
In ecology, the term habitat summarises the array of resources, physical and biotic factors that are present in an area, such as to support the survival and reproduction of a particular species. A species habitat can be seen as the physical ...
LucasArts
Lucasfilm Games (known as LucasArts between 1990 and 2021) is an American video game brand licensing, licensor that is part of Lucasfilm. It was founded in May 1982 by George Lucas as a video game development group alongside his film company; as ...
.
* The first online interactive fiction series
QuantumLink Serial
The QuantumLink Serial is a work of episodic online fiction by the American writer Tracy Reed. It is considered the first such project ever.
The series ran from 1988 to 1989. It was also known as the ''PC-Link Serial'' and the ''AppleLink Seri ...
Quantum Space
Stormfront Studios, Inc. was an American video game developer based in San Rafael, California. In 2007, the company had over 50 developers working on two teams, and owned all its proprietary engines, tools, and technology. As of the end of 2007, ...
, the first fully automated
play-by-mail game
A play-by-mail game (also known as a PBM game, PBEM game, or a turn-based game) is a game played through postal mail, email or other digital media. Correspondence chess and Go were among the first PBM games. ''Diplomacy'' has been played by m ...
(1989–1991).
1991–2006: Internet age, Time Warner merger
In February 1991, AOL for
DOS
DOS is shorthand for the MS-DOS and IBM PC DOS family of operating systems.
DOS may also refer to:
Computing
* Data over signalling (DoS), multiplexing data onto a signalling channel
* Denial-of-service attack (DoS), an attack on a communicat ...
was launched using a
GeoWorks
GEOS (later renamed GeoWorks Ensemble, NewDeal Office, and Breadbox Ensemble) is a computer operating environment, graphical user interface (GUI), and suite of application software. Originally released as PC/GEOS, it runs on DOS-based, IBM PC ...
interface followed a year later by AOL for
Windows
Windows is a group of several proprietary graphical operating system families developed and marketed by Microsoft. Each family caters to a certain sector of the computing industry. For example, Windows NT for consumers, Windows Server for serv ...
. This coincided with growth in pay-based online services, like
Prodigy
Prodigy, Prodigies or The Prodigy may refer to:
* Child prodigy, a child who produces meaningful output to the level of an adult expert performer
** Chess prodigy, a child who can beat experienced adult players at chess
Arts, entertainment, and ...
,
CompuServe
CompuServe (CompuServe Information Service, also known by its initialism CIS) was an American online service provider, the first major commercial one in the world – described in 1994 as "the oldest of the Big Three information services (the oth ...
, and
GEnie
Jinn ( ar, , ') – also romanized as djinn or anglicized as genies (with the broader meaning of spirit or demon, depending on sources)
– are invisible creatures in early pre-Islamic Arabian religious systems and later in Islamic mytho ...
. 1991 also saw the introduction of an original
Dungeons & Dragons
''Dungeons & Dragons'' (commonly abbreviated as ''D&D'' or ''DnD'') is a fantasy tabletop role-playing game (RPG) originally designed by Gary Gygax and Dave Arneson. The game was first published in 1974 by TSR (company)#Tactical Studies Rules ...
title called ''
Neverwinter Nights
''Neverwinter Nights'' is a series of video games developed by BioWare and Obsidian Entertainment, based on the ''Forgotten Realms'' campaign setting of the ''Dungeons & Dragons'' role-playing game. Aside from also being set in the Dungeons & Dr ...
'' from
Stormfront Studios
Stormfront Studios, Inc. was an American video game developer based in San Rafael, California. In 2007, the company had over 50 developers working on two teams, and owned all its proprietary engines, tools, and technology. As of the end of 2007, ...
; which was one of the first Multiplayer Online Role Playing Games to depict the adventure with graphics instead of text.
During the early 1990s, the average subscription lasted for about 25 months and accounted for $350 in total revenue. Advertisements invited modem owners to "Try America Online FREE", promising free software and trial membership. AOL discontinued Q-Link and PC Link in late 1994. In September 1993, AOL added
Usenet
Usenet () is a worldwide distributed discussion system available on computers. It was developed from the general-purpose Unix-to-Unix Copy (UUCP) dial-up network architecture. Tom Truscott and Jim Ellis conceived the idea in 1979, and it was ...
access to its features. This is commonly referred to as the "
Eternal September
Eternal September or the September that never ended is Usenet slang for a period beginning around 1993 when Internet service providers began offering Usenet access to many new users. The flood of new users overwhelmed the existing culture for onl ...
", as Usenet's cycle of new users was previously dominated by smaller numbers of college and university freshmen gaining access in September and taking a few weeks to acclimate. This also coincided with a new "carpet bombing" marketing campaign by CMO
Jan Brandt
Janice Brandt is an American businesswoman and vice chair emeritus of America Online/Time Warner. She is known for her direct marketing campaign at AOL that increased the number of subscribers from 200,000 to more than 22 million.
Early life and ...
to distribute as many free trial AOL trial disks as possible through nonconventional distribution partners. At one point, 50% of the CDs produced worldwide had an AOL logo. AOL quickly surpassed
GEnie
Jinn ( ar, , ') – also romanized as djinn or anglicized as genies (with the broader meaning of spirit or demon, depending on sources)
– are invisible creatures in early pre-Islamic Arabian religious systems and later in Islamic mytho ...
, and by the mid-1990s, it passed
Prodigy
Prodigy, Prodigies or The Prodigy may refer to:
* Child prodigy, a child who produces meaningful output to the level of an adult expert performer
** Chess prodigy, a child who can beat experienced adult players at chess
Arts, entertainment, and ...
(which for several years allowed AOL advertising) and
CompuServe
CompuServe (CompuServe Information Service, also known by its initialism CIS) was an American online service provider, the first major commercial one in the world – described in 1994 as "the oldest of the Big Three information services (the oth ...
. In November 1994, AOL purchased Booklink for its web browser, to give its users web access. In 1996, AOL replaced Booklink with a browser based on Internet Explorer, allegedly in exchange for inclusion of AOL in Windows.
AOL launched services with the
National Education Association
The National Education Association (NEA) is the largest labor union in the United States. It represents public school teachers and other support personnel, faculty and staffers at colleges and universities, retired educators, and college stude ...
, the
American Federation of Teachers
The American Federation of Teachers (AFT) is the second largest teacher's labor union in America (the largest being the National Education Association). The union was founded in Chicago. John Dewey and Margaret Haley were founders.
About 60 perc ...
, ''
National Geographic
''National Geographic'' (formerly the ''National Geographic Magazine'', sometimes branded as NAT GEO) is a popular American monthly magazine published by National Geographic Partners. Known for its photojournalism, it is one of the most widely ...
'', the
Smithsonian Institution
The Smithsonian Institution ( ), or simply the Smithsonian, is a group of museums and education and research centers, the largest such complex in the world, created by the U.S. government "for the increase and diffusion of knowledge". Founded ...
, the
Library of Congress
The Library of Congress (LOC) is the research library that officially serves the United States Congress and is the ''de facto'' national library of the United States. It is the oldest federal cultural institution in the country. The library is ...
,
Pearson Pearson may refer to:
Organizations Education
*Lester B. Pearson College, Victoria, British Columbia, Canada
*Pearson College (UK), London, owned by Pearson PLC
*Lester B. Pearson High School (disambiguation)
Companies
*Pearson PLC, a UK-based int ...
Discovery Networks
Discovery, Inc. was an American multinational mass media factual television conglomerate based in New York City. Established in 1985, the company operated a group of factual and lifestyle television brands, such as the namesake Discovery Channe ...
,
Turner
Turner may refer to:
People and fictional characters
*Turner (surname), a common surname, including a list of people and fictional characters with the name
* Turner (given name), a list of people with the given name
*One who uses a lathe for turni ...
Education Services (
CNN Newsroom
''CNN Newsroom'' (also simply known as ''Newsroom'') is an American news programming block that airs on CNN.
Broadcasting for 43 hours each week, ''Newsroom'' features live and taped news reports, in addition to analysis from experts on the issu ...
),
NPR
National Public Radio (NPR, stylized in all lowercase) is an American privately and state funded nonprofit media organization headquartered in Washington, D.C., with its NPR West headquarters in Culver City, California. It differs from other ...
,
The Princeton Review
The Princeton Review is an education services company providing tutoring, test preparation and admission resources for students. It was founded in 1981. and since that time has worked with over 400 million students. Services are delivered by 4,0 ...
Barron's Barron's or Barrons may refer to:
*Barron's Educational Series, a publisher of books, as well as college entrance exam preparation classes and materials, now an imprint of Kaplan Test Prep
** B.E.S. Publishing, the former owner of Barron's
* ''Barr ...
U.S. Department of Education
The United States Department of Education is a Cabinet-level department of the United States government. It began operating on May 4, 1980, having been created after the Department of Health, Education, and Welfare was split into the Department ...
, and many other education providers. AOL offered the first real-time homework help service (the Teacher Pager—1990; prior to this, AOL provided homework help bulletin boards), the first service by children, for children (Kids Only Online, 1991), the first online service for parents (the Parents Information Network, 1991), the first online courses (1988), the first omnibus service for teachers (the Teachers' Information Network, 1990), the first online exhibit (
Library of Congress
The Library of Congress (LOC) is the research library that officially serves the United States Congress and is the ''de facto'' national library of the United States. It is the oldest federal cultural institution in the country. The library is ...
, 1991), the first parental controls, and many other online education firsts.
AOL purchased search engine
WebCrawler
WebCrawler is a search engine, and one of the oldest surviving search engines on the web today. For many years, it operated as a metasearch engine. WebCrawler was the first web search engine to provide full text search.
History
Brian Pinkerto ...
in 1995, but sold it to
Excite
Excitation, excite, exciting, or excitement may refer to:
* Excitation (magnetic), provided with an electrical generator or alternator
* Excite Ballpark, located in San Jose, California
* Excite (web portal), web portal owned by IAC
* Electron ex ...
the following year; the deal made Excite the sole search and directory service on AOL. After the deal closed in March 1997, AOL launched its own branded search engine, based on Excite, called NetFind. This was renamed to AOL Search in 1999.
AOL charged its users an hourly fee until December 1996, when the company changed to a flat monthly rate of $19.95. During this time, AOL connections were flooded with users trying to connect, and many canceled their accounts due to constant
busy signal
Reanno Devon Gordon (born 24 January 1979), better known by his stage name Busy Signal, is a Jamaican dancehall reggae artist.
Biography
Reanno Devon Gordon p/k/a Busy Signal was born in Saint Ann Parish,Johnson, Carolyn (2006)A Very Busy Chi ...
s. A commercial was made featuring Steve Case telling people AOL was working day and night to fix the problem. Within three years, AOL's user base grew to 10 million people. In 1995, AOL was headquartered at 8619 Westwood Center Drive in the Tysons Corner CDP in
unincorporated Unincorporated may refer to:
* Unincorporated area, land not governed by a local municipality
* Unincorporated entity, a type of organization
* Unincorporated territories of the United States, territories under U.S. jurisdiction, to which Congress ...
Fairfax County
Fairfax County, officially the County of Fairfax, is a county in the Commonwealth of Virginia. It is part of Northern Virginia and borders both the city of Alexandria and Arlington County and forms part of the suburban ring of Washington, D.C. ...
, Virginia, near the Town of Vienna.
AOL was quickly running out of room in October 1996 for its network at the Fairfax County campus. In mid-1996, AOL moved to 22000 AOL Way in Dulles, unincorporated
Loudoun County
Loudoun County () is in the northern part of the Commonwealth of Virginia in the United States. In 2020, the census returned a population of 420,959, making it Virginia's third-most populous county. Loudoun County's seat is Leesburg. Loudoun C ...
, Virginia to provide room for future growth. In a five-year landmark agreement with the most popular operating system, AOL was bundled with
Windows
Windows is a group of several proprietary graphical operating system families developed and marketed by Microsoft. Each family caters to a certain sector of the computing industry. For example, Windows NT for consumers, Windows Server for serv ...
software.
On March 31, 1996, the short-lived
eWorld
eWorld was an online service operated by Apple Inc. between June 1994 and March 1996. The services included email (eMail Center), news, software installs and a bulletin board system (Community Center). Users of eWorld were often referred to as ...
was purchased by AOL. In 1997, about half of all U.S. homes with Internet access had it through AOL. During this time, AOL's content channels, under
Jason Seiken
Jason Seiken is a British-American media executive known for launching the online edition of ''The Washington Post,'' PBS' digital output, and the Telegraph Media Group. A dual citizen of the United States and United Kingdom, he was the first Amer ...
, including News, Sports, and Entertainment, experienced their greatest growth as AOL become the dominant online service internationally with more than 34 million subscribers. In November 1998, AOL announced it would acquire
Netscape
Netscape Communications Corporation (originally Mosaic Communications Corporation) was an American independent computer services company with headquarters in Mountain View, California and then Dulles, Virginia. Its Netscape web browser was onc ...
, best known for their
web browser
A web browser is application software for accessing websites. When a user requests a web page from a particular website, the browser retrieves its files from a web server and then displays the page on the user's screen. Browsers are used on ...
, in a major $4.2 billion deal. The deal closed on March 17, 1999. Another large acquisition in December 1999 was that of
MapQuest
MapQuest (stylized as mapquest) is an American free online web mapping service. It was launched in 1996 as the first commercial web mapping service. MapQuest vies for market share with competitors such as Google Maps and Here.
History
MapQuest's ...
, for $1.1 billion.
In January 2000, as new broadband technologies were being rolled out around the New York City metropolitan area and elsewhere across the U.S., AOL and
Time Warner
Warner Media, LLC ( traded as WarnerMedia) was an American multinational mass media and entertainment conglomerate. It was headquartered at the 30 Hudson Yards complex in New York City, United States.
It was originally established in 1972 by ...
announced plans to merge, forming AOL Time Warner, Inc. The terms of the deal called for AOL shareholders to own 55% of the new, combined company. The deal closed on January 11, 2001. The new company was led by executives from AOL, SBI, and Time Warner.
Gerald Levin
Gerald M. "Jerry" Levin (born May 6, 1939) is an American mass-media businessman. Levin was involved in brokering the merger between AOL and Time Warner in 2000, at the height of the dot-com bubble, a merger which was ultimately disadvantageous ...
, who had served as CEO of Time Warner, was CEO of the new company. Steve Case served as chairman, J. Michael Kelly (from AOL) was the chief financial officer, Robert W. Pittman (from AOL) and Dick Parsons (from Time Warner) served as co-chief operating officers. In 2002,
Jonathan Miller
Sir Jonathan Wolfe Miller CBE (21 July 1934 – 27 November 2019) was an English theatre and opera director, actor, author, television presenter, humourist and physician. After training in medicine and specialising in neurology in the late 19 ...
became CEO of AOL. ''Note: only the beginning of the news article was available, the remainder behind a paywall.'' The following year, AOL Time Warner dropped the "AOL" from its name. It was the largest merger in history when completed with the combined value of the companies at $360 billion. This value fell sharply, to as low as $120 billion, as markets repriced AOL's valuation as a pure internet firm more modestly when combined with the traditional media and cable business. This status did not last long, and the company's value rose again within three months. By the end of that year, the tide had turned against "pure" internet companies, with many collapsing under falling stock prices, and even the strongest companies in the field losing up to 75% of their
market value
Market value or OMV (Open Market Valuation) is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with ''open market value'', ''fair value'' or ''fair market value'', although the ...
. The decline continued though 2001, but even with the losses, AOL was among the internet giants that continued to outperform
brick and mortar
Brick and mortar (also bricks and mortar or B&M) refers to a physical presence of an organization or business in a building or other structure. The term ''brick-and-mortar business'' is often used to refer to a company that possesses or leases r ...
companies.
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
Live 8 was a string of benefit concerts that took place on 2 July 2005, in the G8 states and in South Africa. They were timed to precede the G8 conference and summit held at the Gleneagles Hotel in Auchterarder, Scotland, from 6–8 July 200 ...
concert live over the Internet, and thousands of users downloaded clips of the concert over the following months. In late 2005, AOL released AOL Safety & Security Center, a bundle of
McAfee Antivirus
McAfee VirusScan is an antivirus software created and maintained by McAfee (formerly known as Intel Security, and Network Associates prior to that). Originally marketed as a standalone product, it has been bundled with McAfee LiveSafe, McAfee An ...
firewall
Firewall may refer to:
* Firewall (computing), a technological barrier designed to prevent unauthorized or unwanted communications between computer networks or hosts
* Firewall (construction), a barrier inside a building, designed to limit the spre ...
and phishing protection software. News reports in late 2005 identified companies such as
Yahoo!
Yahoo! (, styled yahoo''!'' in its logo) is an American web services provider. It is headquartered in Sunnyvale, California and operated by the namesake company Yahoo Inc., which is 90% owned by investment funds managed by Apollo Global Man ...
,
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washing ...
, and
Google
Google LLC () is an American multinational technology company focusing on search engine technology, online advertising, cloud computing, computer software, quantum computing, e-commerce, artificial intelligence, and consumer electronics. ...
as candidates for turning AOL into a joint venture. Those plans were abandoned when it was revealed on December 20, 2005, that Google would purchase a 5% share of AOL for $1 billion.
2006–2009: Rebranding and decline
On April 3, 2006, AOL announced that it would retire the full name America Online. The official name of the service became AOL, and the full name of the
Time Warner
Warner Media, LLC ( traded as WarnerMedia) was an American multinational mass media and entertainment conglomerate. It was headquartered at the 30 Hudson Yards complex in New York City, United States.
It was originally established in 1972 by ...
subdivision became AOL LLC. On June 8, 2006, AOL offered a new program called AOL Active Security Monitor, a diagnostic tool to monitor and rate PC security status, and recommended additional security software from AOL or
Download.com
CNET Download (originally Download.com) is an Internet download directory website launched in 1996 as a part of CNET. Initially it resided on the domain ''download.com'', and then ''download.com.com'' for a while, and is now ''download.cnet.com'' ...
. Two months later, AOL released
AOL Active Virus Shield
AOL Active Virus Shield (commonly referred to as AVS) was a free antivirus utility made available by AOL. Its engine was based on the one used by Kaspersky Anti-Virus. The program is no longer available.
Features
Active Virus Shield includes nu ...
, a free product developed by
Kaspersky Lab
Kaspersky Lab (; Russian: Лаборатория Касперского, tr. ''Laboratoriya Kasperskogo'') is a Russian multinational cybersecurity and anti-virus provider headquartered in Moscow, Russia, and operated by a holding company in th ...
, that did not require an AOL account, only an internet email address. The
ISP
An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise private ...
Carphone Warehouse
The Carphone Warehouse Limited was a mobile phone retailer based in London, United Kingdom. In August 2014 the company became a subsidiary of Currys plc (previously named "Dixons Carphone"), which was formed by the merger of its former parent Ca ...
in October 2006 to take advantage of its 100,000 LLU customers, making Carphone Warehouse the largest LLU provider in the UK.
In August 2006, AOL announced that it would offer
email
Electronic mail (email or e-mail) is a method of exchanging messages ("mail") between people using electronic devices. Email was thus conceived as the electronic ( digital) version of, or counterpart to, mail, at a time when "mail" meant ...
accounts and software previously available only to its paying customers, provided that users accessed AOL or AOL.com through an access method not owned by AOL (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 AOL-owned access points and shifting members with high-speed internet access from client-based usage to the more lucrative advertising provider AOL.com. The change from paid to free access was also designed to slow the rate at which members canceled their accounts and defected to
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washing ...
Hotmail
Outlook.com is a webmail service that is part of the Microsoft 365 product family. It offers mail, Calendaring software, calendaring, Address book, contacts, and Task management, tasks services.
Founded in 1996 by Sabeer Bhatia and Jack Smit ...
,
Yahoo!
Yahoo! (, styled yahoo''!'' in its logo) is an American web services provider. It is headquartered in Sunnyvale, California and operated by the namesake company Yahoo Inc., which is 90% owned by investment funds managed by Apollo Global Man ...
or other free email providers. The other free services included:
* AIM (
AOL Instant Messenger
AIM (AOL Instant Messenger) was an instant messaging and presence computer program created by AOL, which used the proprietary OSCAR instant messaging protocol and the TOC protocol to allow registered users to communicate in real time.
AIM w ...
)
* AOL Video, which featured professional content and allowed users to upload videos.
* AOL Local, comprising its CityGuide,
Yellow Pages
The yellow pages are telephone directories of businesses, organized by category rather than alphabetically by business name, in which advertising is sold. The directories were originally printed on yellow paper, as opposed to white pages for ...
and Local Search services to help users find local information like restaurants, local events, and directory listings.
* AOL News
* AOL My eAddress, a custom
domain name
A domain name is a string that identifies a realm of administrative autonomy, authority or control within the Internet. Domain names are often used to identify services provided through the Internet, such as websites, email services and more. As ...
for email addresses. These email accounts could be accessed in a manner similar to those of other AOL and AIM email accounts.
* Xdrive, which allowed users to back up files over the Internet. Quote: "Online backups, where files are shuttled off to the Internet for safekeeping, are suddenly becoming effortless, capacious and even free." It was acquired by AOL on August 4, 2005 and closed on December 31, 2008. It offered a free 5 GB account (free
online file storage
A file-hosting service, cloud-storage service, online file-storage provider, or cyberlocker is an internet hosting service specifically designed to host user files. It allows users to upload files that could be accessed over the internet afte ...
) to anyone with an AOL screenname. Xdrive also provided remote backup services and 50 GB of storage for $9.95 per month.
Also in August, AOL informed its U.S. customers of an increase in the price of its
dial-up access
Dial-up Internet access is a form of Internet access that uses the facilities of the public switched telephone network (PSTN) to establish a connection to an Internet service provider (ISP) by dialing a telephone number on a conventional telepho ...
to $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 as that of its monthly
DSL
Digital subscriber line (DSL; originally digital subscriber loop) is a family of technologies that are used to transmit digital data over telephone lines. In telecommunications marketing, the term DSL is widely understood to mean asymmetric dig ...
access. However, AOL subsequently began offering unlimited dial-up access for $9.95 a month.
On November 16, 2006,
Randy Falco
Randel A. Falco (born December 26, 1953) is an American media executive. Falco was president and CEO of Univision Communications Inc. from June 2011 until retiring in June 2018. Before joining Univision in January 2011 as Executive Vice President ...
succeeded
Jonathan Miller
Sir Jonathan Wolfe Miller CBE (21 July 1934 – 27 November 2019) was an English theatre and opera director, actor, author, television presenter, humourist and physician. After training in medicine and specialising in neurology in the late 19 ...
as CEO. In December 2006, AOL closed its last remaining call center in the United States, "taking the America out of America Online," according to industry pundits. Service centers based in
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
and the
Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
continue to provide customer support and technical assistance to subscribers.
On September 17, 2007, AOL announced the relocation of one of its corporate headquarters from Dulles, Virginia to
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
and the combination of its advertising units into a new subsidiary called Platform A. This action followed several advertising acquisitions, most notably
Advertising.com
AOL (stylized as Aol., formerly a company known as AOL Inc. and originally known as America Online) is an American web portal and online service provider based in New York City. It is a brand marketed by the current incarnation of Yahoo! Inc. ...
, and highlighted the company's new focus on advertising-driven business models. AOL management stressed that "significant operations" would remain in Dulles, which included the company's access services and modem banks.
In October 2007, AOL announced the relocation of its other headquarters from
Loudoun County
Loudoun County () is in the northern part of the Commonwealth of Virginia in the United States. In 2020, the census returned a population of 420,959, making it Virginia's third-most populous county. Loudoun County's seat is Leesburg. Loudoun C ...
, Virginia to New York City, while continuing to operate its Virginia offices. As part of the move to New York and the restructuring of responsibilities at the Dulles headquarters complex after the Reston move, Falco announced on October 15, 2007 plans to lay off 2,000 employees worldwide by the end of 2007, beginning "immediately." The result was a layoff of approximately 40% of AOL's employees. Most compensation packages associated with the October 2007 layoffs included a minimum of 120 days of severance pay, 60 of which were offered in lieu of the 60-day advance notice requirement by provisions of the 1988 federal
WARN Act
The Worker Adjustment and Retraining Notification Act of 1988 (the "WARN Act") is a U.S. labor law that protects employees, their families, and communities by requiring most employers with 100 or more employees to provide 60 calendar-day advance ...
.
By November 2007, AOL's customer base had been reduced to 10.1 million subscribers, slightly more than the number of subscribers of
Comcast
Comcast Corporation (formerly known as American Cable Systems and Comcast Holdings),Before the AT&T merger in 2001, the parent company was Comcast Holdings Corporation. Comcast Holdings Corporation now refers to a subsidiary of Comcast Corpora ...
and AT&T Yahoo!. According to Falco, as of December 2007, the conversion rate of accounts from paid access to free access was more than 80%.
On January 3, 2008, AOL announced the closing of its
Reston, Virginia
Reston is a census-designated place in Fairfax County, Virginia and a principal city of the Washington metropolitan area. As of the 2020 U.S. Census, Reston's population was 63,226.
Founded in 1964, Reston was influenced by the Garden City movem ...
data center, which was sold to
CRG West
The Carlyle Group is a multinational private equity firm, private equity, alternative asset management and financial services corporation based in the United States with $376 billion of assets under management. It specializes in private equity, ...
. On February 6, Time Warner CEO
Jeff Bewkes
Jeffrey Lawrence Bewkes (born May 25, 1952) is an American media executive. He was CEO of Time Warner from January 1, 2008 to June 14, 2018, President from December 2005 to June 2018, and Chairman of the Board from January 1, 2009 to 2018.
Ear ...
announced that Time Warner would divide AOL's internet-access and advertising businesses, with the possibility of later selling the internet-access division.
On March 13, 2008, AOL purchased the social networking site
Bebo
Bebo ( ) was an American Social networking service, social networking website that originally operated from 2005 until its bankruptcy in 2013 and relaunched in February 2021. The site relaunched several times after its bankruptcy with a number ...
for $850m (£417m). On July 25, AOL announced that it was shuttering Xdrive, AOL Pictures and BlueString to save on costs and focus on its core advertising business. AOL Pictures was closed on December 31. On October 31, AOL Hometown (a web-hosting service for the websites of AOL customers) and the AOL Journal blog hosting service were eliminated.
2009–2015: As a digital media company
On March 12, 2009,
Tim Armstrong
Timothy Ross Armstrong (born November 25, 1965) is an American musician, singer, songwriter and producer. Known for his distinctive voice, he is the singer/guitarist for the punk rock band Rancid and hip hop/punk rock supergroup Transplants. ...
, formerly with
Google
Google LLC () is an American multinational technology company focusing on search engine technology, online advertising, cloud computing, computer software, quantum computing, e-commerce, artificial intelligence, and consumer electronics. ...
, was named chairman and CEO of AOL. On May 28, Time Warner announced that it would position AOL as an independent company after
Google
Google LLC () is an American multinational technology company focusing on search engine technology, online advertising, cloud computing, computer software, quantum computing, e-commerce, artificial intelligence, and consumer electronics. ...
's shares ceased at the end of the fiscal year. On November 23, AOL unveiled a new brand identity with the
wordmark
__notoc__
A wordmark, word mark, or logotype, is usually a distinct text-only typographic treatment of the name of a company, institution, or product name used for purposes of identification and branding. Examples can be found in the graphic iden ...
"Aol." superimposed onto canvases created by commissioned artists. The new identity, designed by
Wolff Olins
Wolff Olins is a British advertising agency and corporate identity consultancy. It was started in 1965 and has offices in London, New York City and San Francisco. It now employs some 150 designers, strategists, technologists, programme managers ...
, was integrated with all of AOL's services on December 10, the date upon which AOL traded independently for the first time since the Time Warner merger on the
New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
under the symbol AOL.
On April 6, 2010, AOL announced plans to shutter or sell Bebo. On June 16, the property was sold to
Criterion Capital Partners
Criterion Capital Partners LLC, also known as simply Criterion, is a private equity fund based in Los Angeles, California. It is best known for being the owner of Bebo, from 2010-2013.
History
Christopher Lord co-founded the company in 2002. ...
for an undisclosed amount, believed to be approximately $10 million. In December, AIM eliminated access to AOL chat rooms, noting a marked decline in usage in recent months.
Under Armstrong's leadership, AOL followed a new business direction marked by a series of acquisitions. It announced the acquisition of
Patch Media
Patch.com is an American local news and information platform, primarily owned by Hale Global. As of January 2022, Patch's more than 100 journalists operated some 1,259 hyperlocal news websites, which also have an information component, in 50 U.S. ...
, a network of community-specific news and information sites focused on towns and communities. On September 28, 2010 at the San Francisco
TechCrunch
TechCrunch is an American online newspaper focusing on high tech and startup companies. It was founded in June 2005 by Archimedes Ventures, led by partners Michael Arrington and Keith Teare.
In 2010, AOL acquired the company for approximately ...
Disrupt Conference, AOL signed an agreement to acquire
TechCrunch
TechCrunch is an American online newspaper focusing on high tech and startup companies. It was founded in June 2005 by Archimedes Ventures, led by partners Michael Arrington and Keith Teare.
In 2010, AOL acquired the company for approximately ...
. On December 12, 2010, AOL acquired about.me, a personal profile and identity platform, four days after the platform's public launch.
On January 31, 2011, AOL announced the acquisition of European video distribution network goviral. In March 2011, AOL acquired ''
HuffPost
''HuffPost'' (formerly ''The Huffington Post'' until 2017 and sometimes abbreviated ''HuffPo'') is an American progressive news website, with localized and international editions. The site offers news, satire, blogs, and original content, and ...
'' for $315 million. Shortly after the acquisition was announced, ''
Huffington Post
''HuffPost'' (formerly ''The Huffington Post'' until 2017 and sometimes abbreviated ''HuffPo'') is an American progressive news website, with localized and international editions. The site offers news, satire, blogs, and original content, and ...
'' co-founder
Arianna Huffington
Arianna Stassinopoulos Huffington (née Ariadnē-Anna Stasinopoúlou, el, Αριάδνη-Άννα Στασινοπούλου ; born July 15, 1950) is a Greek-American author, syndicated columnist and businesswoman. She is a co-founder of ''Th ...
replaced AOL content chief David Eun, assuming the role of president and editor-in-chief of the AOL Huffington Post Media Group. On March 10, AOL announced that it would cut approximately 900 workers following the ''
HuffPost
''HuffPost'' (formerly ''The Huffington Post'' until 2017 and sometimes abbreviated ''HuffPo'') is an American progressive news website, with localized and international editions. The site offers news, satire, blogs, and original content, and ...
'' acquisition.
On September 14, 2011, AOL formed a strategic ad-selling partnership with two of its largest competitors,
Yahoo
Yahoo! (, styled yahoo''!'' in its logo) is an American web services provider. It is headquartered in Sunnyvale, California and operated by the namesake company Yahoo! Inc. (2017–present), Yahoo Inc., which is 90% owned by investment funds ma ...
and
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washing ...
. The three companies would begin selling inventory on each others' sites. The strategy was designed to help the companies compete with
Google
Google LLC () is an American multinational technology company focusing on search engine technology, online advertising, cloud computing, computer software, quantum computing, e-commerce, artificial intelligence, and consumer electronics. ...
and advertising networks.
On February 28, 2012, AOL partnered with
PBS
The Public Broadcasting Service (PBS) is an American public broadcasting, public broadcaster and Non-commercial activity, non-commercial, Terrestrial television, free-to-air television network based in Arlington, Virginia. PBS is a publicly fu ...
to launch MAKERS, a digital documentary series focusing on high-achieving women in industries perceived as male-dominated such as war, comedy, space, business, Hollywood and politics. Subjects for MAKERS episodes have included
Oprah Winfrey
Oprah Gail Winfrey (; born Orpah Gail Winfrey; January 29, 1954), or simply Oprah, is an American talk show host, television producer, actress, author, and philanthropist. She is best known for her talk show, ''The Oprah Winfrey Show'', br ...
,
Hillary Clinton
Hillary Diane Rodham Clinton ( Rodham; born October 26, 1947) is an American politician, diplomat, and former lawyer who served as the 67th United States Secretary of State for President Barack Obama from 2009 to 2013, as a United States sen ...
,
Sheryl Sandberg
Sheryl Kara Sandberg (born August 28, 1969) is an American business executive, billionaire, and philanthropist. Sandberg served as chief operating officer (COO) of Meta Platforms, a position from which she stepped down in August 2022. She is al ...
,
Martha Stewart
Martha Helen Stewart (, ; born August 3, 1941) is an American retail businesswoman, writer, and television personality. As founder of Martha Stewart Living Omnimedia, she gained success through a variety of business ventures, encompassing pub ...
,
Indra Nooyi
Indra Nooyi (née Krishnamurthy; born October 28, 1955) is an Indian-American business executive and former chief executive officer and chairperson of PepsiCo.
She has consistently ranked among the world's 100 most powerful women. In 2014, sh ...
,
Lena Dunham
Lena Dunham (, born May 13, 1986) is an American writer, director, actress, and producer. She is known as the creator, writer, and star of the HBO television series ''Girls'' (2012–2017), for which she received several Emmy Award nominations a ...
and
Ellen DeGeneres
Ellen Lee DeGeneres ( ; born January 26, 1958) is an American comedian, television host, actress, writer, and producer. She starred in the sitcom ''Ellen'' from 1994 to 1998, which earned her a Primetime Emmy Award for " The Puppy Episode". Sh ...
.
On March 15, 2012, AOL announced the acquisition of Hipster, a mobile photo-sharing app, for an undisclosed amount. On April 9, 2012, AOL announced a deal to sell 800 patents to
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washing ...
for $1.056 billion. The deal included a perpetual license for AOL to use the patents.
In April, AOL took several steps to expand its ability to generate revenue through online video advertising. The company announced that it would offer
gross rating point In advertising, a gross rating point (GRP) measures impact. GRPs help answer ''how often'' "must someone see it before they can readily recall it" and "how many times" does it take before the desired outcome occurs.
Overview
Gross rating points are ...
(GRP) guarantee for online video, mirroring the television-ratings system and guaranteeing audience delivery for online-video advertising campaigns bought across its properties. This announcement came just days before the Digital Content NewFront (DCNF) a two-week event held by AOL,
Google
Google LLC () is an American multinational technology company focusing on search engine technology, online advertising, cloud computing, computer software, quantum computing, e-commerce, artificial intelligence, and consumer electronics. ...
,
Hulu
Hulu () is an American subscription streaming service majority-owned by The Walt Disney Company, with Comcast's NBCUniversal holding a minority stake. It was launched on October 29, 2007 and it offers a library of films and television serie ...
,
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washing ...
,
Vevo
Vevo ( , an abbreviation for "Video Evolution", stylized as VEVO until 2013) is an American multinational video hosting service, best known for providing music videos to YouTube. The service is also available as an app on selected smart TVs, di ...
and
Yahoo
Yahoo! (, styled yahoo''!'' in its logo) is an American web services provider. It is headquartered in Sunnyvale, California and operated by the namesake company Yahoo! Inc. (2017–present), Yahoo Inc., which is 90% owned by investment funds ma ...
to showcase the participating sites' digital video offerings. The DCNF was conducted in advance of the traditional television upfronts in the hope of diverting more advertising money into the digital space. On April 24, the company launched the
AOL On
AOL On was created as a successor to AOL TV. The launch was announced at the 2012 Digital Content NewFront. AOL On creates news and entertainment reports in the form of short video clips, as well as original web series. All videos are available ...
network, a single website for its video output.
In February 2013, AOL reported its fourth quarter revenue of $599.5 million, its first growth in quarterly revenue in eight years.
In August 2013, Armstrong announced that
Patch Media
Patch.com is an American local news and information platform, primarily owned by Hale Global. As of January 2022, Patch's more than 100 journalists operated some 1,259 hyperlocal news websites, which also have an information component, in 50 U.S. ...
would scale back or sell hundreds of its local news sites. Not long afterward, layoffs began, with up to 500 out of 1,100 positions initially impacted. On January 15, 2014, Patch Media was spun off, and majority ownership was held by Hale Global. By the end of 2014, AOL controlled 0.74% of the global advertising market, well behind industry leader Google's 31.4%.
On January 23, 2014, AOL acquired Gravity, a software startup that tracked users' online behavior and tailored ads and content based on their interests, for $83 million. The deal, which included approximately 40 Gravity employees and the company's personalization technology, was Armstrong's fourth-largest deal since taking command in 2009. Later that year, AOL acquired Vidible, a company that developed technology to help websites run video content from other publishers, and help video publishers sell their content to these websites. The deal, which was announced December 1, 2014, was reportedly worth roughly $50 million.
On July 16, 2014, AOL earned an
Emmy
The Emmy Awards, or Emmys, are an extensive range of awards for artistic and technical merit for the American and international television industry. A number of annual Emmy Award ceremonies are held throughout the calendar year, each with the ...
nomination for the AOL original series ''The Future Starts Here'' in the News and Documentary category. This came days after AOL earned its first
Primetime Emmy Award
The Primetime Emmy Awards, or Primetime Emmys, are part of the extensive range of Emmy Awards for artistic and technical merit for the American television industry. Bestowed by the Academy of Television Arts & Sciences (ATAS), the Primetime ...
nomination and win for ''
Park Bench with Steve Buscemi
''Park Bench with Steve Buscemi'' is an American web series talk show created, directed and hosted by actor Steve Buscemi, distributed by digital network AOL. The series premiered on May 15, 2014. In each episode, Buscemi interviews a famous frien ...
Tiffany Shlain
Tiffany Shlain (born April 8, 1970) is an American filmmaker and author. Described by the public radio program ''On Being'' as "an internet pioneer", Shlain is the co-founder of the Webby Awards and the founder of the International Academy of Dig ...
, the series focused on humans' relationship with technology and featured episodes such as "The Future of Our Species," "Why We Love Robots" and "A Case for Optimism."
2015–2021: Division of Verizon
On May 12, 2015,
Verizon
Verizon Communications Inc., commonly known as Verizon, is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in ...
announced plans to buy AOL for $50 per share in a deal valued at $4.4 billion. The transaction was completed on June 23.
Armstrong Armstrong may refer to:
Places
* Armstrong Creek (disambiguation), various places
Antarctica
* Armstrong Reef, Biscoe Islands
Argentina
* Armstrong, Santa Fe
Australia
* Armstrong, Victoria
Canada
* Armstrong, British Columbia
* Armstrong ...
, who continued to lead the firm following regulatory approval, called the deal the logical next step for AOL. "If you look forward five years, you're going to be in a space where there are going to be massive, global-scale networks, and there's no better partner for us to go forward with than Verizon." he said. "It's really not about selling the company today. It's about setting up for the next five to 10 years."
Analyst David Bank said he thought the deal made sense for Verizon. The deal will broaden Verizon's advertising sales platforms and increase its video production ability through websites such as ''
HuffPost
''HuffPost'' (formerly ''The Huffington Post'' until 2017 and sometimes abbreviated ''HuffPo'') is an American progressive news website, with localized and international editions. The site offers news, satire, blogs, and original content, and ...
'',
TechCrunch
TechCrunch is an American online newspaper focusing on high tech and startup companies. It was founded in June 2005 by Archimedes Ventures, led by partners Michael Arrington and Keith Teare.
In 2010, AOL acquired the company for approximately ...
, and
Engadget
''Engadget'' ( ) is a multilingual technology blog network with daily coverage of gadgets and consumer electronics. ''Engadget'' manages ten blogs four of which are written in English and six have international versions with independent editori ...
. However, Craig Moffett said it was unlikely the deal would make a big difference to Verizon's bottom line. AOL had about two million dial-up subscribers at the time of the buyout. The announcement caused AOL's stock price to rise 17%, while Verizon's stock price dropped slightly.
Shortly before the Verizon purchase, on April 14, 2015, AOL launched ONE by AOL, a digital marketing programmatic platform that unifies buying channels and audience management platforms to track and optimize campaigns over multiple screens. Later that year, on September 15, AOL expanded the product with ONE by AOL: Creative, which is geared towards creative and media agencies to similarly connect marketing and ad distribution efforts.
On May 8, 2015, AOL reported its first-quarter revenue of $625.1 million, $483.5 million of which came from advertising and related operations, marking a 7% increase from Q1 2014. Over that year, the AOL Platforms division saw a 21% increase in revenue, but a drop in adjusted OIBDA due to increased investments in the company's video and programmatic platforms.
On June 29, 2015, AOL announced a deal with
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washing ...
to take over the majority of its digital advertising business. Under the pact, as many as 1,200 Microsoft employees involved with the business will be transferred to AOL, and the company will take over the sale of display, video, and mobile ads on various Microsoft platforms in nine countries, including Brazil, Canada, the United States, and the United Kingdom. Additionally,
Google Search
Google Search (also known simply as Google) is a search engine provided by Google. Handling more than 3.5 billion searches per day, it has a 92% share of the global search engine market. It is also the most-visited website in the world.
The ...
will be replaced on AOL properties with
Bing
Bing most often refers to:
* Bing Crosby (1903–1977), American singer
* Microsoft Bing, a web search engine
Bing may also refer to:
Food and drink
* Bing (bread), a Chinese flatbread
* Bing (soft drink), a UK brand
* Bing cherry, a varie ...
—which will display advertising sold by Microsoft. Both advertising deals are subject to
affiliate marketing
Affiliate marketing is a marketing arrangement in which affiliates receive a commission for each visit, signup or sale they generate for a merchant. This arrangement allows businesses to outsource part of the sales process. It is a form of p ...
revenue sharing
Revenue sharing is the distribution of revenue, the total amount of income generated by the sale of goods and services among the stakeholders or contributors. It should not be confused with profit shares, in which scheme only the profit is share ...
.
On July 22, 2015, AOL received two News and Documentary Emmy nominations, one for MAKERS in the Outstanding Historical Programming category, and the other for ''True Trans With Laura Jane Grace'', which documented the story of Laura Jane Grace, a
transgender
A transgender (often abbreviated as trans) person is someone whose gender identity or gender expression does not correspond with their sex assigned at birth. Many transgender people experience dysphoria, which they seek to alleviate through tr ...
musician best known as the founder, lead singer, songwriter and guitarist of the punk rock band
Against Me!
Against Me! is an American punk rock band formed in 1997 in Naples, Florida, by singer and guitarist Laura Jane Grace. That same year, Grace moved to Gainesville, Florida, which is considered the band's hometown. Since 2001, the band's lineup ...
, and her decision to come out publicly and overall transition experience.
On September 3, 2015, AOL agreed to buy Millennial Media for US$238 million. On October 23, 2015, AOL completed the acquisition.
On October 1, 2015, Go90, a free ad-supported mobile video service aimed at young adult and teen viewers that Verizon owns and AOL oversees and operates launched its content publicly after months of beta testing. The initial launch line-up included content from
Comedy Central
Comedy Central is an American basic cable channel owned by Paramount Global through its network division's MTV Entertainment Group unit, based in Manhattan. The channel is geared towards young adults aged 18–34 and carries comedy programming ...
,
HuffPost
''HuffPost'' (formerly ''The Huffington Post'' until 2017 and sometimes abbreviated ''HuffPo'') is an American progressive news website, with localized and international editions. The site offers news, satire, blogs, and original content, and ...
,
Nerdist News
Nerdist News is a Nerdist-branded pop culture newsletter launched in February 2012. It was founded and operated by Nerdist Industries' CEO, Peter Levin, and its CCO, Chris Hardwick. It was hosted by Jessica Chobot.
Publication
The cross-plat ...
,
Univision
Univision () is an American Spanish-language free-to-air television network owned by TelevisaUnivision. It is the United States' largest provider of Spanish-language content. The network's programming is aimed at the Latino public and includes ...
News,
Vice
A vice is a practice, behaviour, or habit generally considered immoral, sinful, criminal, rude, taboo, depraved, degrading, deviant or perverted in the associated society. In more minor usage, vice can refer to a fault, a negative character tra ...
,
ESPN
ESPN (originally an initialism for Entertainment and Sports Programming Network) is an American international basic cable sports channel owned by ESPN Inc., owned jointly by The Walt Disney Company (80%) and Hearst Communications (20%). The ...
and
MTV
MTV (Originally an initialism of Music Television) is an American cable channel that launched on August 1, 1981. Based in New York City, it serves as the flagship property of the MTV Entertainment Group, part of Paramount Media Networks, a di ...
.
On April 20, 2016, AOL acquired virtual reality studio
RYOT
Ryot (alternatives: raiyat, rait or ravat) was a general economic term used throughout India for peasant cultivators but with variations in different provinces. While zamindars were landlords, raiyats were tenants and cultivators, and served as hi ...
to bring immersive 360 degree video and VR content to
HuffPost
''HuffPost'' (formerly ''The Huffington Post'' until 2017 and sometimes abbreviated ''HuffPo'') is an American progressive news website, with localized and international editions. The site offers news, satire, blogs, and original content, and ...
's global audience across desktop, mobile, and apps.
In July 2016, Verizon Communications announced its intent to purchase the core internet business of
Yahoo!
Yahoo! (, styled yahoo''!'' in its logo) is an American web services provider. It is headquartered in Sunnyvale, California and operated by the namesake company Yahoo Inc., which is 90% owned by investment funds managed by Apollo Global Man ...
. Verizon merged AOL with Yahoo into a new company called "
Oath Inc.
Traditionally an oath (from Anglo-Saxon ', also called plight) is either a statement of fact or a promise taken by a sacrality as a sign of verity. A common legal substitute for those who conscientiously object to making sacred oaths is to giv ...
", which in January 2019 rebranded itself as
Verizon Media
Verizon Communications Inc., commonly known as Verizon, is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas i ...
.
In April 2018,
Oath Inc.
Traditionally an oath (from Anglo-Saxon ', also called plight) is either a statement of fact or a promise taken by a sacrality as a sign of verity. A common legal substitute for those who conscientiously object to making sacred oaths is to giv ...
sold
Moviefone
Moviefone is an American-based moving pictures listing and information service. Moviegoers can obtain local showtimes, cinema information, film reviews, and advance tickets, as well as TV content and a comprehensive search tool that allows users ...
to
MoviePass
MoviePass, Inc. is an American subscription-based movie ticketing service owned by co-founder Stacy Spikes.
The service was launched in 2011 and allowed subscribers to purchase up to a movie ticket a day for a monthly fee. The service utilized ...
Parent
Helios and Matheson Analytics
Helios and Matheson Analytics was a publicly traded data analytics company based in New York City, New York. The company became widely known during its final years for acquiring and subsequently operating MoviePass, which ultimately lead to the ...
.
In November 2020 the ''
Huffington Post
''HuffPost'' (formerly ''The Huffington Post'' until 2017 and sometimes abbreviated ''HuffPo'') is an American progressive news website, with localized and international editions. The site offers news, satire, blogs, and original content, and ...
'' was sold to
BuzzFeed
BuzzFeed, Inc. is an American Internet media, news and entertainment company with a focus on digital media. Based in New York City, BuzzFeed was founded in 2006 by Jonah Peretti and John S. Johnson III to focus on tracking viral content. Ken ...
in a stock deal.
2021–present: Apollo Global Management
On May 3, 2021, Verizon announced it would sell 90 percent of its Verizon Media division to
Apollo Global Management
Apollo Global Management, Inc. is an American global private-equity firm. It provides investment management and invests in credit, private equity, and real assets. As of March 31, 2022, the company had $512 billion of assets under management, ...
As of September 1, 2021, the following media brands became subsidiary of AOL's parent Yahoo Inc.
*
Engadget
''Engadget'' ( ) is a multilingual technology blog network with daily coverage of gadgets and consumer electronics. ''Engadget'' manages ten blogs four of which are written in English and six have international versions with independent editori ...
* Autoblog
*
TechCrunch
TechCrunch is an American online newspaper focusing on high tech and startup companies. It was founded in June 2005 by Archimedes Ventures, led by partners Michael Arrington and Keith Teare.
In 2010, AOL acquired the company for approximately ...
*
Built by Girls
Built by Girls (previously known as Cambio), is a New York-based organization that helps girls ages 15–22 get involved in technology by offering mentorship, and guidance. The company is owned and operated by Yahoo! Inc.
In 2016, BUILTBYGIRLS l ...
AOL's content contributors consists of over 20,000 bloggers, including politicians, celebrities, academics, and policy experts, who contribute on a wide range of topics making news.
In addition to mobile-optimized web experiences, AOL produces mobile applications for existing AOL properties like Autoblog, Engadget, The Huffington Post, TechCrunch, and products such as Alto, Pip, and Vivv.
Advertising
AOL has a global portfolio of media brands and advertising services across mobile, desktop, and TV. Services include brand integration and sponsorships through its in-house branded content arm, Partner Studio by AOL, as well as data and programmatic offerings through ad technology stack,
ONE by AOL
One by AOL, formerly known as Millennial Media, is an advertising company that places display ads on mobile devices (mobile marketing).
History
One by AOL was founded as Millennial Media in May 2006 by Paul Palmieri (CEO), Paul Palmieri and C ...
.
AOL acquired a number of businesses and technologies help to form ONE by AOL. These acquisitions included AdapTV in 2013 and Convertro, Precision Demand, and Vidible in 2014. ONE by AOL is further broken down into ONE by AOL for Publishers (formerly Vidible, AOL On Network and Be On for Publishers) and ONE by AOL for Advertisers, each of which have several sub-platforms.
On September 10, 2018, AOL's parent company Oath consolidated
BrightRoll
BrightRoll was a programmatic video advertising platform that was acquired by Yahoo!. BrightRoll's video platform became Yahoo's primary video advertising marketplace and demand-side platform. The BrightRoll brand was discontinued by Verizon Medi ...
, One by AOL and Yahoo Gemini to 'simplify' adtech service by launching a single advertising proposition dubbed Oath Ad Platforms, now Yahoo! Ad Tech.
Membership
AOL offers a range of integrated products and properties including communication tools, mobile apps and services and subscription packages.
*
Dial-up Internet access
Dial-up Internet access is a form of Internet access that uses the facilities of the public switched telephone network (PSTN) to establish a connection to an Internet service provider (ISP) by dialing a telephone number on a conventional telepho ...
– While 2.1 million people still used AOL's dial-up service as recently as 2015, only a few thousand were still subscribed as of 2021.
*
AOL Mail
AOL Mail (stylized as Aol Mail.) is a free web-based email service provided by AOL, a division of Yahoo.
Features
AOL Mail has the following features available:
* Email attachment limit: 25 MB
* Max mailbox size: Unlimited
* Supported protoc ...
– AOL Mail is AOL's proprietary email client. It is fully integrated with AIM and links to news headlines on AOL content sites.
*
AOL Instant Messenger
AIM (AOL Instant Messenger) was an instant messaging and presence computer program created by AOL, which used the proprietary OSCAR instant messaging protocol and the TOC protocol to allow registered users to communicate in real time.
AIM w ...
(AIM) – was AOL's proprietary instant-messaging tool. It was released in 1997. It lost market share to competition in the instant messenger market such as Google Chat, Facebook Messenger, and Skype. It also included a video-chat service, AV by AIM. On December 15, 2017, AOL discontinued AIM.
* AOL Plans – AOL Plans offers three online safety and assistance tools: ID protection, data security and a general online technical assistance service.
AOL Desktop
AOL Desktop is an internet suite produced by AOL from 2007 that integrates a
web browser
A web browser is application software for accessing websites. When a user requests a web page from a particular website, the browser retrieves its files from a web server and then displays the page on the user's screen. Browsers are used on ...
instant messenger
Instant messaging (IM) technology is a type of online chat allowing real-time text transmission over the Internet or another computer network. Messages are typically transmitted between two or more parties, when each user inputs text and tri ...
client. Version 10.X was based on
AOL OpenRide
AOL OpenRide was an Internet application suite made by AOL from 2006, combining e-mail, AOL Instant Messenger, instant-messaging, a web browser and a media player (application software), media player in one window. The suite was available for fre ...
, it is an upgrade from such. The
macOS
macOS (; previously OS X and originally Mac OS X) is a Unix operating system developed and marketed by Apple Inc. since 2001. It is the primary operating system for Apple's Mac computers. Within the market of desktop and lapt ...
version is based on
WebKit
WebKit is a browser engine developed by Apple and primarily used in its Safari web browser, as well as on the iOS and iPadOS version of any web browser. WebKit is also used by the BlackBerry Browser, PlayStation consoles beginning from the PS ...
.
AOL Desktop version 10.X was different from previous AOL browsers and AOL Desktop versions. Its features are focused on web browsing as well as
email
Electronic mail (email or e-mail) is a method of exchanging messages ("mail") between people using electronic devices. Email was thus conceived as the electronic ( digital) version of, or counterpart to, mail, at a time when "mail" meant ...
. For instance, one does not have to sign into AOL in order to use it as a regular browser. In addition, non-AOL email accounts can be accessed through it. Primary buttons include "MAIL", "IM", and several shortcuts to various web pages. The first two require users to sign in, but the shortcuts to web pages can be used without authentication. AOL Desktop version 10.X was late marked as unsupported in favor of supporting the AOL Desktop 9.X versions.
Version 9.8 was released, replacing the Internet Explorer components of the internet browser with CEF (Chromium Embedded Framework) to give users an improved web browsing experience closer to that of Chrome
Version 11 of AOL Desktop, was a total rewrite but maintained a similar user interface to the previous 9.8.X series of releases.
In 2017, a new paid version called AOL Desktop Gold was released, available for $4.99 per month after trial. It replaced the previous free version. After the shutdown of AIM in 2017, AOL's original chat rooms continued to be accessible through AOL Desktop Gold, and some rooms remained active during peak hours. That chat system was shut down on December 15, 2020.
In addition to AOL Desktop, the company also offered a
browser toolbar
A browser toolbar is a toolbar that resides within a browser's window. All major web browsers provide support to browser toolbar development as a way to extend the browser's GUI and functionality. Browser toolbars are considered to be a particula ...
Mozilla plug-in, AOL Toolbar, for several web browsers that provided quick access to AOL services. The toolbar was available from 2007 until 2018.
Criticism
In its earlier incarnation as a "
walled garden
A walled garden is a garden enclosed by high walls, especially when this is done for horticultural rather than security purposes, although originally all gardens may have been enclosed for protection from animal or human intruders. In temperate c ...
" 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 3.5-inch 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. The marketing tactic was criticized for its environmental cost, and AOL CDs were recognized as ''
PC World
''PC World'' (stylized as PCWorld) is a global computer magazine published monthly by IDG. Since 2013, it has been an online only publication.
It offers advice on various aspects of PCs and related items, the Internet, and other personal tech ...
''s most annoying tech product.
Community leaders
AOL used a system of volunteers to moderate its chat rooms, forums and user communities. The program dated back to AOL's early days, when it charged by the hour for access and one of its highest billing services was chat. AOL provided free access to community leaders in exchange for moderating the chat rooms, and this effectively made chat very cheap to operate, and more lucrative than AOL's other services of the era. There were 33,000 community leaders in 1996. All community leaders received hours of training and underwent a probationary period. While most community leaders moderated chat rooms, some ran AOL communities and controlled their layout and design, with as much as 90% of AOL's content being created or overseen by community managers until 1996.
By 1996,
ISP
An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise private ...
s were beginning to charge flat rates for unlimited access, which they could do at a profit because they only provided internet access. Even though AOL would lose money with such a pricing scheme, it was forced by market conditions to offer unlimited access in October 1996. In order to return to profitability, AOL rapidly shifted its focus from content creation to advertising, resulting in less of a need to carefully moderate every forum and chat room to keep users willing to pay by the minute to remain connected.
After unlimited access, AOL considered scrapping the program entirely, but continued it with a reduced number of community leaders, with scaled-back roles in creating content. Although community leaders continued to receive free access, after 1996 they were motivated more by the prestige of the position and the access to moderator tools and restricted areas within AOL. By 1999, there were over 15,000 volunteers in the program.
In May 1999, two former volunteers filed a class-action lawsuit alleging AOL violated the Fair Labor Standards Act by treating volunteers like employees. Volunteers had to apply for the position, commit to working for at least three to four hours a week, fill out timecards and sign a non-disclosure agreement. On July 22, AOL ended its youth corps, which consisted of 350 underage community leaders. At this time, the
United States Department of Labor
The United States Department of Labor (DOL) is one of the executive departments of the U.S. federal government. It is responsible for the administration of federal laws governing occupational safety and health, wage and hour standards, unemploym ...
began an investigation into the program, but it came to no conclusions about AOL's practices.
AOL ended its community leader program on June 8, 2005. The class action lawsuit dragged on for years, even after AOL ended the program and AOL declined as a major internet company. In 2010, AOL finally agreed to settle the lawsuit for $15 million. The community leader program was found to be an example of co-production in a 2009 article in ''
International Journal of Cultural Studies
The ''International Journal of Cultural Studies'' is a peer-reviewed academic journal covering cultural studies. The first editor-in-chief was John Hartley ( Curtin and Cardiff universities). The journal was established in 1998 and is published ...
''.
Billing disputes
AOL has faced a number of lawsuits over claims that it has been slow to stop billing customers after their accounts have been canceled, either by the company or the user. In addition, AOL changed its method of calculating used minutes in response to a
class action lawsuit
A class action, also known as a class-action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class action ...
. Previously, AOL would add 15 seconds to the time a user was connected to the service and round up to the next whole minute (thus, a person who used the service for 12 minutes and 46 seconds would be charged for 14 minutes). AOL claimed this was to account for sign on/sign off time, but because this practice was not made known to its customers, the plaintiffs won (some also pointed out that signing on and off did not always take 15 seconds, especially when connecting via another ISP). AOL disclosed its connection-time calculation methods to all of its customers and credited them with extra free hours. In addition, the AOL software would notify the user of exactly how long they were connected and how many minutes they were being charged.
AOL was sued by the
Ohio Attorney General
The Ohio Attorney General is the chief legal officer of the U.S. state, State of Ohio in the United States. The office is filled by general election, held every four years. The Ohio Attorney General is Republican Dave Yost.
History
The office ...
in October 2003 for improper billing practices. The case was settled on June 8, 2005. AOL agreed to resolve any consumer complaints filed with the
Ohio
Ohio () is a state in the Midwestern region of the United States. Of the fifty U.S. states, it is the 34th-largest by area, and with a population of nearly 11.8 million, is the seventh-most populous and tenth-most densely populated. The sta ...
AG's office. In December 2006, AOL agreed to provide
restitution
The law of restitution is the law of gains-based recovery, in which a court orders the defendant to ''give up'' their gains to the claimant. It should be contrasted with the law of compensation, the law of loss-based recovery, in which a court o ...
to Florida consumers to settle the case filed against them by the
Florida Attorney General
The Florida attorney general is an elected cabinet official in the U.S. state of Florida. The attorney general serves as the chief legal officer of the state and is head of the Florida Department of Legal Affairs.
The office is one of Florida's t ...
.
Account cancellation
Many customers complained that AOL personnel ignored their demands to cancel service and stop billing. In response to approximately 300 consumer complaints, the
New York Attorney General
The attorney general of New York is the chief legal officer of the U.S. state of New York and head of the Department of Law of the state government. The office has been in existence in some form since 1626, under the Dutch colonial government o ...
's office began an inquiry of AOL's customer service policies. The investigation revealed that the company had an elaborate scheme for rewarding employees who purported to
retain
RETAIN is a mainframe based Database management system, database system, accessed via IBM 3270 terminals (or more likely, emulators), used internally within IBM providing service support to IBM field personnel and customers.
The acronym RETAIN sta ...
or "save" subscribers who had called to cancel their Internet service. In many instances, such retention was done against subscribers' wishes, or without their consent. Under the scheme, customer service personnel received bonuses worth tens of thousands of dollars if they could successfully dissuade or "save" half of the people who called to cancel service. For several years, AOL had instituted minimum retention or "save" percentages, which consumer representatives were expected to meet. These bonuses, and the minimum "save" rates accompanying them, had the effect of employees not honoring cancellations, or otherwise making cancellation unduly difficult for consumers.
On August 24, 2005, America Online agreed to pay $1.25 million to the state of New York and reformed its customer service procedures. Under the agreement, AOL would no longer require its customer service representatives to meet a minimum quota for customer retention in order to receive a bonus. However the agreement only covered people in the state of New York.
On June 13, 2006, Vincent Ferrari documented his account cancellation phone call in a blog post, stating he had switched to broadband years earlier. In the recorded phone call, the AOL representative refused to cancel the account unless the 30-year-old Ferrari explained why AOL hours were still being recorded on it. Ferrari insisted that AOL software was not even installed on the computer. When Ferrari demanded that the account be canceled regardless, the AOL representative asked to speak with Ferrari's father, for whom the account had been set up. The conversation was aired on CNBC. When CNBC reporters tried to have an account on AOL cancelled, they were hung up on immediately and it ultimately took more than 45 minutes to cancel the account.
On July 19, 2006, AOL's entire retention manual was released on the Internet. On August 3, 2006,
Time Warner
Warner Media, LLC ( traded as WarnerMedia) was an American multinational mass media and entertainment conglomerate. It was headquartered at the 30 Hudson Yards complex in New York City, United States.
It was originally established in 1972 by ...
announced that the company would be dissolving AOL's retention centers due to its profits hinging on $1 billion in cost cuts. The company estimated that it would lose more than six million subscribers over the following year.
Direct marketing of disks
Prior to 2006, AOL was infamous for the unsolicited mass
direct mail
Advertising mail, also known as direct mail (by its senders), junk mail (by its recipients), mailshot or admail (North America), letterbox drop or letterboxing (Australia) is the delivery of advertising material to recipients of postal mail. The d ...
of 3"
floppy disks
A floppy disk or floppy diskette (casually referred to as a floppy, or a diskette) is an obsolescent type of disk storage composed of a thin and flexible disk of a magnetic storage medium in a square or nearly square plastic enclosure lined w ...
and
CD-ROM
A CD-ROM (, compact disc read-only memory) is a type of read-only memory consisting of a pre-pressed optical compact disc that contains data. Computers can read—but not write or erase—CD-ROMs. Some CDs, called enhanced CDs, hold both comput ...
s containing their software. They were the most frequent user of this marketing tactic, and received criticism for the environmental cost of the campaign. According to ''PC World'', in the 1990s "you couldn't open a magazine (''PC World'' included) or your mailbox without an AOL disk falling out of it".
The mass distribution of these disks was seen as wasteful by the public and led to protest groups. One such was No More AOL CDs, a web-based effort by two IT workers to collect one million disks with the intent to return the disks to AOL. The website was started in August 2001, and an estimated 410,176 CDs were collected by August 2007 when the project was shut down.Internet Archive Wayback Machine 2007 Aug 20 archive of NoMoreAOLCDs.com main page Web.archive.org (August 20, 2007). Retrieved on July 8, 2011.
Software
In 2000, AOL was served with an $8 billion lawsuit alleging that its AOL 5.0 software caused significant difficulties for users attempting to use third-party Internet service providers. The lawsuit sought damages of up to $1000 for each user that had downloaded the software cited at the time of the lawsuit. AOL later agreed to a settlement of $15 million, without admission of wrongdoing. The AOL software then was given a feature called AOL Dialer, or AOL Connect on . This feature allowed users to connect to the ISP without running the full interface. This allowed users to use only the applications they wish to use, especially if they do not favor the AOL Browser.
AOL 9.0 was once identified by Stopbadware as being ''under investigation'' for installing additional software without disclosure, and modifying browser preferences, toolbars, and icons. However, as of the release of AOL 9.0 VR (Vista Ready) on January 26, 2007, it was no longer considered badware due to changes AOL made in the software.
Usenet newsgroups
When AOL gave clients access to
Usenet
Usenet () is a worldwide distributed discussion system available on computers. It was developed from the general-purpose Unix-to-Unix Copy (UUCP) dial-up network architecture. Tom Truscott and Jim Ellis conceived the idea in 1979, and it was ...
in 1993, they hid at least one newsgroup in standard list view: ''alt.aol-sucks''. AOL did list the newsgroup in the alternative description view, but changed the description to "Flames and complaints about America Online". With AOL clients swarming
Usenet
Usenet () is a worldwide distributed discussion system available on computers. It was developed from the general-purpose Unix-to-Unix Copy (UUCP) dial-up network architecture. Tom Truscott and Jim Ellis conceived the idea in 1979, and it was ...
newsgroups, the old, existing user base started to develop a strong distaste for both AOL and its clients, referring to the new state of affairs as
Eternal September
Eternal September or the September that never ended is Usenet slang for a period beginning around 1993 when Internet service providers began offering Usenet access to many new users. The flood of new users overwhelmed the existing culture for onl ...
.
AOL discontinued access to Usenet on June 25, 2005. No official details were provided as to the cause of decommissioning Usenet access, except providing users the suggestion to access Usenet services from a third-party,
Google Groups
Google Groups is a service from Google that provides discussion groups for people sharing common interests. The Groups service also provides a gateway to Usenet newsgroups via a shared user interface.
Google Groups became operational in February ...
. AOL then provided community-based
message boards
An Internet forum, or message board, is an online discussion site where people can hold conversations in the form of posted messages. They differ from chat rooms in that messages are often longer than one line of text, and are at least temporar ...
in lieu of Usenet.
Terms of Service (TOS)
AOL has a detailed set of guidelines and expectations for users on their service, known as the Terms of Service (TOS, also known as Conditions of Service, or COS in the UK). It is separated into three different sections: ''Member Agreement'', ''Community Guidelines'' and ''Privacy Policy''. All three agreements are presented to users at time of registration and digital acceptance is achieved when they access the AOL service. During the period when volunteer chat room hosts and board monitors were used, chat room hosts were given a brief online training session and test on Terms of Service violations.
There have been many complaints over rules that govern an AOL user's conduct. Some users disagree with the TOS, citing the guidelines are too strict to follow coupled with the fact the TOS may change without users being made aware. A considerable cause for this was likely due to alleged censorship of user-generated content during the earlier years of growth for AOL.
Certified email
In early 2005, AOL stated its intention to implement a
certified email
Certified email (known as ''Posta elettronica certificata'' in Italy, or ''PEC'' in short) is a special type of email in use in Italy, Switzerland, Hong Kong and Germany. Certified email is meant to provide a legal equivalent of the traditional ...
system called Goodmail, which will allow companies to send email to users with whom they have pre-existing business relationships, with a visual indication that the email is from a trusted source and without the risk that the email messages might be blocked or stripped by
spam filter
Email filtering is the processing of email to organize it according to specified criteria. The term can apply to the intervention of human intelligence, but most often refers to the automatic processing of messages at an SMTP server, possibly appl ...
s.
This decision drew fire from
MoveOn
MoveOn (formerly known as MoveOn.org) is a progressive public policy advocacy group and political action committee. Formed in 1998 around one of the first massively viral email petitions, MoveOn has since grown into one of the largest grassroot ...
, which characterized the program as an "email tax", and the
Electronic Frontier Foundation
The Electronic Frontier Foundation (EFF) is an international non-profit digital rights group based in San Francisco, California. The foundation was formed on 10 July 1990 by John Gilmore, John Perry Barlow and Mitch Kapor to promote Internet ci ...
(EFF), which characterized it as a shakedown of non-profits. A website called Dearaol.com was launched, with an online petition and a blog that garnered hundreds of signatures from people and organizations expressing their opposition to AOL's use of Goodmail.
Esther Dyson
Esther Dyson (born 14 July 1951) is a Swiss-born American investor, journalist, author, commentator and philanthropist. She is the executive founder of Wellville, a nonprofit project focused on improving equitable wellbeing. Dyson is also an ang ...
defended the move in an editorial in ''
The New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'', saying "I hope Goodmail succeeds, and that it has lots of competition. I also think it and its competitors will eventually transform into services that more directly serve the interests of mail recipients. Instead of the fees going to Goodmail and AOL, they will also be shared with the individual recipients."
Tim Lee of the Technology Liberation Front posted an article that questioned the Electronic Frontier Foundation's adopting a confrontational posture when dealing with private companies. Lee's article cited a series of discussions on
Declan McCullagh
Declan McCullagh is an American entrepreneur, journalist, and software engineer.
He is the CEO and co-founder, with computer scientist Celine Bursztein, of Recent Media Inc., a startup in Silicon Valley that has built a recommendation engine and ...
's Politechbot mailing list on this subject between the EFF's Danny O'Brien and antispammer Suresh Ramasubramanian, who has also compared the EFF's tactics in opposing Goodmail to tactics used by Republican political strategist
Karl Rove
Karl Christian Rove (born December 25, 1950) is an American Republican political consultant, policy advisor, and lobbyist. He was Senior Advisor and Deputy Chief of Staff during the George W. Bush administration until his resignation on August 3 ...
.
SpamAssassin
Apache SpamAssassin is a computer program used for anti-spam techniques, e-mail spam filtering. It uses a variety of spam-detection techniques, including Domain Name System, DNS and fuzzy checksum techniques, Bayesian spam filtering, Bayesian filt ...
developer Justin Mason posted some criticism of the EFF's and Moveon's "going overboard" in their opposition to the scheme.
The dearaol.com campaign lost momentum and disappeared, with the last post to the now defunct dearaol.com blog—"AOL starts the shakedown" being made on May 9, 2006.
Comcast
Comcast Corporation (formerly known as American Cable Systems and Comcast Holdings),Before the AT&T merger in 2001, the parent company was Comcast Holdings Corporation. Comcast Holdings Corporation now refers to a subsidiary of Comcast Corpora ...
, who also used the service, announced on its website that Goodmail had ceased operations and as of February 4, 2011, they no longer used the service.
Search data
On August 4, 2006, AOL released a compressed text file on one of its websites containing 20 million search keywords for over 650,000 users over a 3-month period between March 1, 2006 and May 31, intended for research purposes. AOL pulled the file from public access by August 7, but not before its wide distribution on the Internet by others. Derivative research, titled ''A Picture of Search'' was published by authors Pass, Chowdhury and Torgeson for The First International Conference on Scalable Information Systems.
The data were used by websites such as AOLstalker for entertainment purposes, where users of AOLstalker are encouraged to judge AOL clients based on the humorousness of personal details revealed by search behavior.
User list exposure
In 2003, Jason Smathers, an AOL employee, was convicted of stealing America Online's 92 million screen names and selling them to a known spammer. Smathers pled guilty to conspiracy charges in 2005., August 17, 2005 Smathers pled guilty to violations of the US
CAN-SPAM Act of 2003
The Controlling the Assault of Non-Solicited Pornography And Marketing (CAN-SPAM) Act of 2003 is a law passed in 2003 establishing the United States' first national standards for the sending of commercial e-mail. The law requires the Federal Trad ...
. He was sentenced in August 2005 to 15 months in prison; the sentencing judge also recommended Smathers be forced to pay $84,000 in restitution, triple the $28,000 that he sold the addresses for.
AOL's Computer Checkup "scareware"
On February 27, 2012, a
class action lawsuit
A class action, also known as a class-action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class action ...
AOL, Inc.
AOL (stylized as Aol., formerly a company known as AOL Inc. and originally known as America Online) is an American web portal and online service provider based in New York City. It is a brand marketed by the current incarnation of Yahoo! Inc. ...
The lawsuit alleged Support.com and AOL's Computer Checkup "
scareware
Scareware is a form of malware which uses social engineering to cause shock, anxiety, or the perception of a threat in order to manipulate users into buying unwanted software. Scareware is part of a class of malicious software that includes r ...
" (which uses software developed by Support.com) misrepresented that their software programs would identify and resolve a host of technical problems with computers, offered to perform a free "scan," which often found problems with users' computers. The companies then offered to sell software—for which AOL allegedly charged $4.99 a month and Support.com $29—to remedy those problems. Both AOL, Inc. and Support.com, Inc. settled on May 30, 2013, for $8.5 million. This included $25.00 to each valid class member and $100,000 each to
Consumer Watchdog
Consumer Watchdog (formerly the Foundation for Taxpayer and Consumer Rights) is a non-profit, progressive organization which advocates for taxpayer and consumer interests, with a focus on insurance, health care, political reform, privacy and ener ...
and the
Electronic Frontier Foundation
The Electronic Frontier Foundation (EFF) is an international non-profit digital rights group based in San Francisco, California. The foundation was formed on 10 July 1990 by John Gilmore, John Perry Barlow and Mitch Kapor to promote Internet ci ...
. Judge
Jacqueline Scott Corley
Jacqueline Scott Corley (née Jacqueline Marie Scott, born 1966) is a United States district judge of the United States District Court for the Northern District of California. She served as a United States magistrate judge of the same court from ...
wrote: "Distributing a portion of the undsto Consumer Watchdog will meet the interests of the silent class members because the organization will use the funds to help protect consumers across the nation from being subject to the types of fraudulent and misleading conduct that is alleged here," and "EFF's mission includes a strong consumer protection component, especially in regards to online protection."
AOL continues to market Computer Checkup.
NSA Prism program
Following media reports about
PRISM
Prism usually refers to:
* Prism (optics), a transparent optical component with flat surfaces that refract light
* Prism (geometry), a kind of polyhedron
Prism may also refer to:
Science and mathematics
* Prism (geology), a type of sedimentary ...
, NSA's massive electronic surveillance program, in June 2013, several technology companies were identified as participants, including AOL. According to leaks of said program, AOL joined the PRISM program in 2011.
Hosting of user profiles changed, then discontinued
At one time, most AOL users had an online "profile" hosted by the AOL Hometown service. When AOL Hometown was discontinued, users had to create a new profile on
Bebo
Bebo ( ) was an American Social networking service, social networking website that originally operated from 2005 until its bankruptcy in 2013 and relaunched in February 2021. The site relaunched several times after its bankruptcy with a number ...
. This was an unsuccessful attempt to create a social network that would compete with Facebook. When the value of Bebo decreased to a tiny fraction of the $850 million AOL paid for it, users were forced to recreate their profiles yet again, on a new service called AOL Lifestream.
AOL took the decision to shut down Lifestream on February 24, 2017, and gave users one month's notice to save photos and videos that had been uploaded to Lifestream. Following the shutdown, AOL no longer provides any option for hosting user profiles.
During the Hometown/Bebo/Lifestream era, another user's profile could be displayed by clicking the "Buddy Info" button in the AOL Desktop software. After the shutdown of Lifestream, this was no longer supported, but opened to the AIM home page (www.aim.com), which also became defunct, redirecting to AOL's home page.
See also
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Adrian Lamo
Adrián Alfonso Lamo Atwood (February 20, 1981 – March 14, 2018) was an American threat analyst and hacker. Lamo first gained media attention for breaking into several high-profile computer networks, including those of ''The New York Times'', ...
– Inside-AOL.com
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AOHell
AOHell was a Windows application that was used to simplify ' cracking' (computer hacking) using AOL. The program contained a very early use of the term phishing. It was created by a teenager under the pseudonym Da Chronic, whose expressed motivat ...
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Comparison of webmail providers
The following tables compare general and technical information for a number of notable webmail providers who offer a web interface in English.
The list does not include web hosting providers who may offer email services as a part of hosting ...
Dot-com bubble
The dot-com bubble (dot-com boom, tech bubble, or the Internet bubble) was a stock market bubble in the late 1990s, a period of massive growth in the use and adoption of the Internet.
Between 1995 and its peak in March 2000, the Nasdaq Compo ...
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List of acquisitions by AOL
AOL is an internet company founded in 1985 as Quantum Computing Services. Each acquisition is for the respective company in its entirety. The acquisition date listed is the date of the agreement between AOL and the subject of the acquisition. ...
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List of S&P 400 companies
This is a list of companies having stocks that are included in the S&P MidCap 400 (S&P 400) stock market index. The index, maintained by S&P Dow Jones Indices, comprises the common stocks of 400 mid-cap, mostly American, companies. Although called ...