America Online Inc is poised for record subscriber growth in the September quarter. The company told analysts that the CompuServe unit will add 300,000 users in North America alone, while the flagship AOL service is likely to add more than 950,000 – including about 100,000 internationally. Investment Bank Warburg Dillon Read also believes the company’s churn rate has tailed off markedly in the past six months and says that, coupled with reduced marketing spending, should result in a better-than- expected first-quarter report.
Separately, an AOL executive said the company might spend as much as $10bn to gain access to consumers through enhanced technologies such as cable, satellite and wireless, Bloomberg reported. Speaking at a conference in New Orleans, Ted Leonsis, president of AOL’s interactive properties group, said the company is exploring a variety of new ways to reach potential subscribers – especially through non-PC devices such as smartphones – and said it was willing to invest heavily to create the necessary relationships. We have the checks to write on the right deals, Leonsis told the gathering.
