How Much Did It Cost AOL To Send Us Those CDs In The 90s? - GoFuckYourself.com

D Ghost · 12-28-2010, 09:14 PM

?A Lot!,? Says Steve Case

Quote:

If you lived in the United States in the 1990s, you remember these. They started as 3.5-inch floppies and transitioned into CDs. And I?m not exaggerating. I got one just about every single day. You?ve got mail, indeed.

If nothing else, it was ingenious marketing for AOL. While people eventually started bitching about getting spammed by the discs, most of those people probably also installed them at least once and checked out the service. So how much did that cost AOL?

?A lot,? says CEO at the time, Steve Case. Case himself took to Quora recently to answer the question: How much did it cost AOL to distribute all those CDs back in the 1990′s?

Case says that he doesn?t remember the total amount spent on the discs specifically, but says that in the early 1990s, AOL?s goal was to spend 10 percent of lifetime revenue to get a new subscriber. He says that since the average subscriber life was around 25 months, revenue was about $350 off of each of these users. So he guesses they probably spent about $35 per user on things such as these discs.

?As we were able to lower the cost of disks/trial/etc we were able to ramp up marketing. (Plus, we knew Microsoft was coming and it was never going to be easier or cheaper to get market share.) When we went public in 1992 we had less than 200,000 subscribers; a decade later the number was in the 25 million range,? Case recalls.

In other words, the discs worked.

Case also notes that the subscriber growth helped grow AOL from a market cap of $70 million at the time of their IPO to $150 billion when the merger with Time Warner occurred.

I repeat, the discs worked. Well, at least until that merger turned into a nightmare and had to be dissolved. A move which paved the way for the new-look AOL to purchase TechCrunch this year.

Another user on Quora looked over some numbers from the 90s and gave a more specific number for how much AOL spent on those discs: $300 million.

Update: Jan Brandt, AOL?s former Chief Marketing Officer has now weighed in as well:

Over $300 million :-) At one point, 50% of the CD?s produced worldwide had an AOL logo on it. We were logging in new subscribers at the rate of one every six seconds

http://techcrunch.com/2010/12/27/aol-discs-90s/

BJ · 12-28-2010, 09:17 PM

I wouldn't be surprised if snail mail makes a comeback

Overload · 12-28-2010, 09:27 PM

http://www.metacafe.com/watch/350848..._a_disco_ball/

D Ghost · 12-28-2010, 09:28 PM

More On AOL?s Disc Strategy: $1.19 Floppies, 50% Of All CDs Made, And Precision Bombing

http://techcrunch.com/2010/12/28/aol-floppy-disk/

EVERESS · 12-28-2010, 11:05 PM

What I can remember is that they went as far as appearing next to cash registers in gas stations. I'm shocked that they are still in existence.

RyuLion · 12-28-2010, 11:14 PM

There are tons of people with the same @aol.com account.

will76 · 12-28-2010, 11:23 PM

Quote:

Originally Posted by DJ The Kid

?As we were able to lower the cost of disks/trial/etc we were able to ramp up marketing. (Plus, we knew Microsoft was coming and it was never going to be easier or cheaper to get market share.) When we went public in 1992 we had less than 200,000 subscribers; a decade later the number was in the 25 million range,? Case recalls.

and another decade later how many people are paying for AOL now, 25 ?

Rochard · 12-29-2010, 12:42 AM

I remember those disks. I used to get a few in the mail every week. We used to grab them in bulk from stores who couldn't give them away quick enough and use them for whatever.

The Ghost · 12-29-2010, 01:02 AM

Quote:

Originally Posted by Rochard

I remember those disks. I used to get a few in the mail every week. We used to grab them in bulk from stores who couldn't give them away quick enough and use them for whatever.

Easily got over 100 disks & cds from them. Never signed up though.

cooldude7 · 12-29-2010, 01:17 AM

nice strategy but 300million was big number at that time.

Angry Jew Cat - Banned for Life · 12-29-2010, 01:18 AM

I miss floppy disks...

Sarah_Jayne · 12-29-2010, 03:13 AM

The coaster industry must have hated them.

D Ghost · 12-29-2010, 03:34 PM

Quote:

Originally Posted by Sarah_MaxCash

The coaster industry must have hated them.

Yes indeed

EthnicLover · 12-29-2010, 03:49 PM

AOL instant messenger ruled!

Do people still go to aol.com and why?

uno · 12-29-2010, 03:52 PM

I had a table that was wobbly and those discs fixed it right up.

MaDalton · 12-29-2010, 03:56 PM

i fell for it - 1996 or 1997 - and it was damn hard to cancel a few years later

D Ghost · 12-29-2010, 04:37 PM

Quote:

Originally Posted by EthnicLover

Do people still go to aol.com and why?

garce · 12-30-2010, 01:29 AM

Quote:

Originally Posted by MaDalton

i fell for it - 1996 or 1997 - and it was damn hard to cancel a few years later

I signed up in late 1996, and it took months to cancel the account. Worse yet, I could rarely connect because I almost always got a busy signal. So I paid for something that I couldn't connect to or cancel.

Nice introduction to the internet.

12-28-2010, 09:27 PM	#3
Overload Confirmed User Industry Role: Join Date: Jul 2005 Location: Beck's City, North Teutonia Posts: 3,185	http://www.metacafe.com/watch/350848..._a_disco_ball/ __________________ There aren't enough faces and palms on this planet for an appropriate reaction to religion.

12-28-2010, 11:05 PM	#5
EVERESS Confirmed User Industry Role: Join Date: Oct 2010 Posts: 195	What I can remember is that they went as far as appearing next to cash registers in gas stations. I'm shocked that they are still in existence. __________________ JR.McLaren ICQ: 649961182 http://www.EVERESS.net

12-28-2010, 11:14 PM	#6
RyuLion ClubDomCash.com Industry Role: Join Date: Mar 2003 Location: San Diego Posts: 32,184	There are tons of people with the same @aol.com account. __________________ Adult Biz Consultant A tech head since 1995

12-29-2010, 12:42 AM	#8
Rochard Jägermeister Test Pilot Industry Role: Join Date: Dec 2001 Location: NORCAL Posts: 73,177	I remember those disks. I used to get a few in the mail every week. We used to grab them in bulk from stores who couldn't give them away quick enough and use them for whatever. __________________ “The choice is no longer between right or left. The choice is between normal and crazy.” - Sarah Huckabee Sanders YNOT MAIL \| THE BEST ADULT MAILING SOLUTION

12-29-2010, 03:49 PM	#14
EthnicLover Confirmed User Join Date: Feb 2007 Location: S. California Posts: 1,584	AOL instant messenger ruled! Do people still go to aol.com and why? __________________ Honest adult reviews? - Adult Reviews Ethnic paysite owners? - Get reviewed Follow me? - Twitter Porn

12-28-2010, 09:17 PM	#2
BJ Confirmed User Join Date: Mar 2002 Location: asia Posts: 5,590	I wouldn't be surprised if snail mail makes a comeback

12-28-2010, 09:28 PM	#4
D Ghost null Industry Role: Join Date: May 2006 Posts: 9,820	More On AOL?s Disc Strategy: $1.19 Floppies, 50% Of All CDs Made, And Precision Bombing http://techcrunch.com/2010/12/28/aol-floppy-disk/

12-29-2010, 01:17 AM	#10
cooldude7 Confirmed User Industry Role: Join Date: Nov 2009 Location: Heaven Posts: 4,306	nice strategy but 300million was big number at that time.

12-29-2010, 01:18 AM	#11
Angry Jew Cat - Banned for Life (felis madjewicus) Industry Role: Join Date: Jul 2006 Location: In Mom & Dad's Basement Posts: 20,368	I miss floppy disks...

12-29-2010, 03:13 AM	#12
Sarah_Jayne Now with more Jayne Industry Role: Join Date: Dec 2002 Location: Los Angeles Posts: 40,077	The coaster industry must have hated them.

12-29-2010, 03:52 PM	#15
uno RIP Dodger. BEST.CAT.EVER Industry Role: Join Date: Dec 2002 Location: NYC Area Posts: 18,450	I had a table that was wobbly and those discs fixed it right up. __________________ -uno icq: 111-914 CrazyBabe.com - porn art MojoHost - For all your hosting needs, present and future. Tell them I sent ya!

12-29-2010, 03:56 PM	#16
MaDalton I am Amazing Content! Industry Role: Join Date: Feb 2004 Posts: 39,822	i fell for it - 1996 or 1997 - and it was damn hard to cancel a few years later __________________ AmazingContent.com - providing only the best content and service since 2003 Monetize your content on Veegaz.com - one of Germanies largest VOD sites Got German traffic? We convert it into money for you! Skype: madalton02826 - Email: oltecconsult [at] gmail [dot] com