AOL used to be king of the dial-up hill. At its peak, over 26.7 million households accessed the Internet via AOL, a figure that no American ISP has ever surpassed. That success came at a cost, though: those CDs (and floppy disks!) that arrived in your letterbox, often on a weekly basis, cost AOL over $300 million.The data comes from Quora, a service that is fast becoming the go-to place for juicy, 'insider' information. Someone asked about AOL's distribution costs, and in mere moments, both the CEO-at-the-time, Steve Case, and the former Chief Marketing Officer, Jan Brandt, had chimed in with authoritative responses. Case recalls, that in the hay day of the mid-1990s, AOL was quite content to spend $35 on obtaining a new subscriber. Brandt, responding a little bit later, provided a total cost of "over $300 million," for the distribution of the CDs. She went on to provide a shocking statistic: "At one point, 50% of the CDs produced worldwide had an AOL logo on it." Shocking, but... sadly rather believable.
AOL spent more than $300 million on distributing free sign-up CDs originally appeared on Download Squad on Tue, 28 Dec 2010 06:00:00 EST. Please see our terms for use of feeds.
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Let's be honest: if you're reading Download Squad, you're in the 99th percentile when it comes to computer technology. You probably know how to touch type, or send a file across the world at the speed of light, and in all likelihood you own one of the big three video game consoles. Like all things that you've grown up with and come to rely on, though, you don't realize just how lucky you are to have high-tech gadgets in your life.
