AOL In Decline

Looking at Time Warner’s financial results from yesterday, it’s amazing how quickly AOL has turned into a major drag on the company. The basic problem is technology — dial-up subscribers are disappearing and AOL is failing to capture enough paid broadband subscribers to replace them. After all, who wants to pay a cable or DSL broadband provide and then pay an additional amount to AOL for a “bring your own access” account? Morgan Stanley forecasts AOL will continue to ooze subscribers this year — losing close to another 2 million of them.