AOL recently announced its first-quarter earnings in which it mentioned that the revenues from its internet subscription business declined by 24% compared to the year-ago quarter. The Internet subscription business is AOL’s legacy dial-up Internet access service, which has seen a large subscriber decline as better broadband products emerged. According to AOL, the number of domestic Internet subscribers declined by 22% in the first quarter compared to the same quarter last year. The decline is not only limited to its Internet business, but also trickles down to its search advertising business. These subscribers are the most loyal users of AOL’s search portal and the decline in Internet subscribers affects its search advertising business as well.
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