TimeWarner Dissolves AOL Retention Centers

TimeWarner announced yesterday an AOL makeover ot make more money with less subscribers. The profit hinged on $1 billion in cost cuts mainly coming from, “the company’s extensive marketing effort to attract new customers and retain old ones,” NYT reports.

“The company estimates that it will lose more than six million paying subscribers over the next year. “

People might like to think that it was the exposure given Vincent Ferrari’s call that jump started the retention center flush. That may be too rosy a view. Maybe there’s a certain point where there’s simply too many people trying to cancel, too eagerly and it’s more cost-effective to quickly process them than tourniquet the attrition.

Like the wise willow, AOL bent to the farts of change.

Comments

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  1. Ben says:

    Laying off 5,000. That’s a lot of retainers.

    (but look at the bright side, those 5,000 can now have free AOL e-mail!)

  2. Vinny says:

    Nah, it’s not too rosy. It’s all about ME!

    MEMEMEMEMEMEMEMEMEMEMEME!

    ME ME ME

    Just kidding. I don’t think it helped matters, but I don’t think it was the cause either…

  3. Tiger says:

    In 2004 AOL was losing members faster than ever. This trend only increased in speed. Not to mention the stock went into the toilet. Right after AOL went to a third party verifing Saves it was over for them. They could not use the same old tricks to keep members. Glad to be rid of them.