170,000 U.S. users flee AOL in fourth quarter
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170,000 U.S. users flee AOL in fourth quarter
NEW YORK - After a relentless decade-long climb to more than 35 million global subscribers, the number of America Online users has slipped for the first time.
Tucked in its earnings release on Wednesday, the online division of AOL Time Warner reported the departure of 170,000 U.S. users in the fourth quarter - despite the splashy release of its latest software, version 8.0.
"While AOL is still the No. 1 online service in terms of reach and time spent online, it is losing relevance steadily," said Dylan Brooks, an independent analyst of Internet service providers.
On Wednesday the company also reported a staggering $99 billion loss for 2002 and the resignation of CNN founder Ted Turner from his post as vice chairman.
Analysts believe the drop in subscribers, however minuscule, could foreshadow a gloomier future for an AOL that has been unable to make the transition to high-speed broadband from its domination of the slow-speed dial-up access market.
Figures from Jupiter Research show that AOL holds slightly fewer than one in three U.S. dial-up subscribers, but just one in 30 broadband accounts.
AOL says the drop in customers - all based in the United States - will be a minor blip, not the start of a major downward trend. The company expects an overall growth in subscriber numbers in 2003.
Tucked in its earnings release on Wednesday, the online division of AOL Time Warner reported the departure of 170,000 U.S. users in the fourth quarter - despite the splashy release of its latest software, version 8.0.
"While AOL is still the No. 1 online service in terms of reach and time spent online, it is losing relevance steadily," said Dylan Brooks, an independent analyst of Internet service providers.
On Wednesday the company also reported a staggering $99 billion loss for 2002 and the resignation of CNN founder Ted Turner from his post as vice chairman.
Analysts believe the drop in subscribers, however minuscule, could foreshadow a gloomier future for an AOL that has been unable to make the transition to high-speed broadband from its domination of the slow-speed dial-up access market.
Figures from Jupiter Research show that AOL holds slightly fewer than one in three U.S. dial-up subscribers, but just one in 30 broadband accounts.
AOL says the drop in customers - all based in the United States - will be a minor blip, not the start of a major downward trend. The company expects an overall growth in subscriber numbers in 2003.
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