AOL makes online waves

In moves that are sure to make industry waves and raise the ire of its 11 million members, America Online announced that it is bumping its monthly access charge by $2 and cutting back staff at its CompuServe subsidiary. The news comes as the online giant restructures its operations and puts Robert Pittman in an elevated executive position.

AOL raising prices update America Online says it is bumping up its monthly access charge by 10 percent to $21.95. AOL to withstand rate backlash news analysis In fairness, the timing couldn't have been better. Readers respond to the $2 question poll AOL isn't worth the new $21.95 price, according to most respondents to a NEWS.COM Poll. AOL profits beat estimates Bolstered by a growth in subscribers, advertising, and e-commerce revenues, the online giant posts improved second-quarter results. "C" development stalled CompuServe's separate Web-based service is another casualty of America Online's restructuring plans. ISPs not matching AOL increase--yet America Online's Internet access competitors are not jumping on the rate-increase bandwagon yet, though some are considering it. AOL restructures, forms new units Robert Pittman is made president and COO of the entire company, now made of three parts. CompuServe lays off 500 AOL's reorganization will result in layoffs for the subsidiary online service. AOL's coming of age timeline America Online has had a year full of tremendous highs and lows, and so far it has come out on top.