AOL, Inc. (NYSE:AOL) is a case study on a business model adapting to market trends and going under a necessary transformation. Once a traditional dial-up internet business (they still have this business and it makes up most of the profits still today), the company has been shifting its focus in recent years to more of an online content company with an advertising component. Let's take a look at the different segments AOL works in, and show what profits will look like in the future as the business model shifts.
The membership group is the company's traditional dial-up business, and currently the main driver of profits. Dial-up internet has been in secular decline for some time (revenues...
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