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Name | AOL Inc. |
---|---|
Logo | |
Type | Public () |
Foundation | 2009 as AOL Inc. 1983 as Control Video Corporation, Vienna, Virginia |
Location city | 770 Broadway,New York City, New York |
Location country | U.S. |
Owner | |
Key people | Tim Armstrong (Chairman and CEO) |
Num employees | 6,700 (12-31-2009) |
Industry | Internet & Communications |
Products | Online advertising |
Homepage | AOL.com portal AOL.com Corporate site |
AOL Inc. (), formerly known as America Online and logo typeset as "Aol.", is an American global Internet services and media company. AOL is headquartered at 770 Broadway in New York. Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services.
AOL is best known for its online software suite, also called AOL, that allowed customers to access the world's largest "walled garden" online community and eventually reach out to the internet as a whole. At its zenith, AOL's membership was over 30 million members worldwide, most of whom accessed the AOL service through the AOL software suite.
On May 28, 2009, Time Warner announced that it would spin off AOL into a separate public company. The spin off occurred on December 9, 2009, ending the 8 year relationship between the two companies.
America Online, Inc., as the company was then called, was led by executives from AOL, SBI and Time Warner. Gerald Levin, who had served as CEO of Time Warner, was CEO of the new company. Steve Case served as Chairman, J. Michael Kelly (from AOL) was the Chief Financial Officer, Robert W. Pittman (from AOL) and Dick Parsons (from Time Warner) served as Co-Chief Operating Officers. The total value of AOL stock subsequently went from $226 billion to about $20 billion. Similarly, its customer base has decreased to 10.1 million subscribers as of November 2007, just narrowly ahead of Comcast and AT&T; Yahoo!. As of June 2010 AOL's subscriber base has dropped to 4.4 million.
AOL is a company in transition, made evident by discussions of buy-outs and joint ventures during a period of dramatic decline in AOL's subscriber base. those plans were apparently abandoned when it was revealed on December 20, 2005 that Google would purchase a 5% share of AOL for $1 billion.
AOL was rated both one of the best and worst Internet suppliers in the UK, according to a poll by BBC Watchdog.
On March 31, 1997, the short lived eWorld was purchased by AOL. The ISP side of AOL UK was bought by The Carphone Warehouse in October 2006 to take advantage of their 100,000 LLU customers which made The Carphone Warehouse the biggest LLU provider in the UK.
On May 28, 2009, Time Warner announced that it would spin AOL off as an independent company once Google's shares ceased at the end of the fiscal year, and AOL's page and logo changed afterward.
AOL ceased to be a part of Time Warner on December 9, 2009. The company declared an IPO on the 9th, under the stock symbol NYSE:AOL.
{| class="wikitable" width=350 style="float: right; margin: 0.5em 0 1em 1em; font-size:90%"
! colspan="2" | AOL release timeline
|-
| 1989
| America Online for Macintosh received as a popular Apple Macintosh BBS
|-
| February 1991
| AOL for DOS launched
|-
| January 1993
| AOL 2.0 for the Apple Macintosh released,
AOL 1.0 for Microsoft Windows 3.x launched
|-
| June 1994
| AOL 1.5 for Microsoft Windows 3.x released
|-
| September 1994
| AOL 2.0 for Microsoft Windows 3.x released
|-
| June 1995
| AOL 2.5 for Microsoft Windows 3.x released
|-
| June 1995
| AOL 3.0 (Win16) for Windows 3.x/Windows 95/Windows NT released
|-
| June 1996
| AOL 3.0 for Windows 95 released
|-
| July 1998 / June 1999
| AOL 4.0 (Casablanca) and Refresh 2 released
|-
| September 1999
| AOL 5.0 (Kilimanjaro) released
|-
| June 2000
| AOL 5.0 for 9x/NT/2K (Niagara) released
|-
| October and December 2000
| AOL 6.0 (K2 – Karakorum) and Refresh released
|-
| September 2001
| AOL 6.0.2 for XP (Steppenwolf) launched
|-
| October and December 2001, May and July 2002
| AOL 7.0 (Taz) and Refresh 1, Refresh 2, and Refresh 2 Plus released
|-
| October 2002
| AOL 8.0 (Spacely) released
|-
| April 2003
| AOL 8.0 Plus (Elroy) launched
|-
| August and September 2003
| AOL 9.0 Optimized (Bunker Hill / Blue Hawaii) and Refresh released
|-
| May 2004
| AOL 9.0 Optimized SE/LE (Thailand / Tahiti) released
|-
| November 2004, July 2005
| AOL 9.0 Security Edition SE/LE (Strauss) and Refresh released
|-
| August 2005 to March 2006
| AOL Suite Beta launched (cancelled)
|-
| September 2006, March 2007
| AOL OpenRide (Streamliner) launched
|-
| November 2006, April 2007
| AOL 9.0 VR and Refresh (Raga) released (AOL 9.0 for Microsoft Windows Vista but also works with Microsoft Windows 98, ME, 2000 and XP)
|-
| September 2007
| AOL Desktop for Mac Beta released
|-
| October 31, 2007
| AOL 9.1 (Tarana) released
|-
| December 2007
| AOL Desktop (a.k.a. AOL 10.0) launched
|-
| May 2008
| AOL Desktop for Mac 1.0 officially launched
|-
| September 2008
| AOL Desktop 10.1 released
|-
| February 2009
| AOL 9.5 released (Classic) (Beta refreshed sometime in 2009)
|-
| October 2009
| AOL 9.5 Refresh released, compatible with XP, Vista and Windows 7
|}
AOL began life as a short-lived venture called Control Video Corporation (or CVC), founded by Bill von Meister. Its sole product was an online service called GameLine for the Atari 2600 video game console after von Meister's idea of buying music on demand was rejected by Warner Brothers. Subscribers bought a modem from the company for $49.95 and paid a one-time $15 setup fee. GameLine permitted subscribers to temporarily download games and keep track of high scores, at a cost of $1 per game. The telephone disconnected and the downloaded game would remain in GameLine's Master Module and playable until the user turned off the console or downloaded another game.
The original technical team was composed of Marc Seriff, Tom Ralston, Ken Huntsman, Janet Hunter, Dave Brown, Steve Trus, Ray Heinrich, Craig Dykstra, and Doug Coward.
In January 1983, Steve Case was hired as a marketing consultant for Control Video on the recommendation of his brother, investment banker Dan Case. In May 1983, Jim Kimsey became a manufacturing consultant for Control Video, which was near bankruptcy. Kimsey was brought in by his West Point friend Frank Caufield, an investor in the company.
From the beginning, AOL included online games in its mix of products; many classic and casual games were included in the original PlayNet software system. In the early years of AOL the company introduced many innovative online interactive titles and games, including:
In 2008 Neverwinter Nights was honored (along with Everquest and World of Warcraft) at the 59th Annual Technology & Engineering Emmy Awards for advancing the art form of MMORPG games.
In February 1991 AOL for DOS was launched using a GeoWorks interface followed a year later by AOL for Windows. This coincided with growth in pay-based online services, like Prodigy, CompuServe, and GEnie. AOL discontinued Q-Link and PC Link in the fall of 1994.
Steve Case positioned AOL as the online service for people unfamiliar with computers, in particular contrast to CompuServe, which had long served the technical community. The PlayNet system that AOL licensed was the first online service to require use of proprietary software, rather than a standard terminal program; as a result it was able to offer a graphical user interface (GUI) instead of command lines, and was well ahead of the competition in emphasizing communication among members as a feature.
In particular was the Chat Room concept from PlayNet, as opposed to the previous paradigm of CB-style channels. Chat Rooms allowed a large group of people with similar interests to convene and hold conversations in real time, including:
Another area of early AOL leadership was education. Between 1990-94, AOL launched services with the National Education Association, the American Federation of Teachers, National Geographic, the Smithsonian Institution, the Library of Congress, Pearson, Scholastic, ASCD, NSBA, NCTE, Discovery Networks, Turner Education Services (CNN Newsroom), National Public Radio, The Princeton Review, Stanley Kaplan, Barron's, Highlights for Kids, the US Department of Education, and many other education providers. AOL's offered the first real-time homework help service (the Teacher Pager—1990; prior to this, AOL provided homework help bulletin boards), the first service by kids, for kids (Kids Only Online, 1991), the first online service for parents (the Parents Information Network, 1991), the first online courses (1988), the first omnibus service for teachers (the Teachers' Information Network, 1990), the first online exhibit (Library of Congress, 1991), the first parental controls, and many other online education firsts.
In September 1993, AOL added USENET access to its features. This is commonly referred to as the "Eternal September".
AOL quickly surpassed GEnie, and by the mid-1990s, it passed Prodigy (which for several years allowed AOL advertising) and CompuServe. Originally, AOL charged its users an hourly fee, but in 1996 this changed to a flat monthly rate of $19.99. Within three years, AOL's userbase grew to 10 million people. During this time, AOL connections would be flooded with users trying to get on, and many canceled their accounts due to constant busy signals (this was often joked "AOL" standing for "Always Off-Line"). In 1995 AOL was headquartered at 8619 Westwood Center Drive in the Tysons Corner CDP in unincorporated Fairfax County, Virginia, near the Town of Vienna.
AOL was quickly running out of room in 1996 for its network at the Fairfax County campus. In 1996, AOL moved to 22000 AOL Way in Dulles, unincorporated Loudoun County, Virginia. The move to Dulles took place in mid-1996 and provided room for future growth. In a five year landmark agreement with the most popular operating system, AOL was bundled with Windows software.
Since its merger with Time Warner (the owners of the aforementioned Warner Bros.) in 2001, the value of AOL has dropped significantly from its $240 billion high. Its subscriber base has seen no quarterly growth since 2002. AOL has since attempted to reposition itself as a content provider similar to companies such as Yahoo! as opposed to an Internet service provider.
In 1999, a class action lawsuit was filed against AOL citing violations of U.S. labor laws in its usage of CLs. The Department of Labor investigated but came to no conclusions, closing their investigation in 2001. AOL began drastically reducing the responsibilities and privileges of its volunteers in 2000. The program was eventually ended on June 8, 2005. Current Community Leaders at the time were offered 12 months of credit on their accounts in thanks for their service.
In February 2010, a settlement was reached in the class action suit. The settlement included a $15 million USD payment divided among more than 7,000 individual former Community Leaders.
AOL was sued by the Ohio Attorney General in October 2003 for improper billing practices. The case was settled on June 8, 2005. AOL agreed to resolve any consumer complaints filed with the Ohio AG's office. In December 2006, AOL agreed to provide restitution to Florida consumers to settle the case filed against them by the Florida Attorney General.
Many customers complained that AOL personnel ignored their demands to cancel service and stop billing. On August 24, 2005, America Online agreed to pay $1.25 million to the state of New York and reformed its customer service procedures. Under the agreement, AOL would no longer require its customer service representatives to meet a minimum quota for customer retention in order to receive a bonus.
On June 13, 2006, a man named Vincent Ferrari documented his account cancellation phone call in a blog post, stating he had switched to broadband years earlier. In the recorded phone call, the AOL representative refused to cancel the account unless the 30-year-old Ferrari explained why AOL hours were still being recorded on it. Ferrari insisted that AOL software was not even installed on the computer. When Ferrari demanded that the account be canceled regardless, the AOL representative asked to speak with Ferrari's father, for whom the account had been set up. The conversation was aired on CNBC. When CNBC reporters tried to have an account on AOL cancelled, they were hung up on immediately and it ultimately took more than 45 minutes to cancel the account.
On July 19, 2006, AOL's entire retention manual was released on the Internet.
On August 3, 2006, Time Warner announced that the company would be dissolving AOL's retention centers due to its profits hinging on $1 billion in cost cuts. The company estimated that it would lose more than six million subscribers over the following year.
* In 2000, AOL was served with an $8 billion lawsuit alleging that its AOL 5.0 software caused significant difficulties for users attempting to use third-party Internet service providers. The lawsuit sought damages of up to $1000 for each user that had downloaded the software cited at the time of the lawsuit. AOL later agreed to a settlement of $15 million, without admission of wrongdoing. Now, the AOL software has a feature called AOL Dialer, or AOL Connect on Mac OS X. This feature allows users to connect to the ISP without running the full interface. This allows users to use only the applications they wish to use, especially if they do not favor the AOL Browser. AOL 9.0 was once identified by Stopbadware as being under investigation for installing additional software without disclosure, and modifying browser preferences, toolbars, and icons. However, as of the release of AOL 9.0 VR (Vista Ready) on 26 January 2007, it is no longer considered badware due to changes AOL made in the software.
Later, AOL discontinued providing access to Usenet on 25 June 2005. No official details were provided as to the cause of decommissioning Usenet access, except providing users the suggestion to access Usenet services from a third-party, Google Groups. Currently, AOL provides community-based Message Boards in lieu of Usenet.
There have been many complaints over rules that govern an AOL user's conduct. Some users disagree with the TOS, citing the guidelines are too strict to follow coupled with the fact the TOS may change without users being made aware. A considerable cause for this was likely due to alleged censorship of user-generated content during the earlier years of growth for AOL.
This decision has drawn fire from MoveOn, which characterizes the program as an "e-mail tax", and the EFF, which characterizes it as a shakedown of non profits. A website called Dearaol.com was launched, with an online petition and a blog that garnered hundreds of signatures from people and organizations expressing their opposition to AOL's use of Goodmail.
Esther Dyson defended the move in a New York Times editorial saying "I hope Goodmail succeeds, and that it has lots of competition. I also think it and its competitors will eventually transform into services that more directly serve the interests of mail recipients. Instead of the fees going to Goodmail and EON, they will also be shared with the individual recipients."
Other members of the antispam and blogging community are broadly critical of moveon.org and the EFF's attempts to characterize this as a "shakedown".
Tim Lee of the Technology Liberation Front posted an article that questioned the EFF's adopting a confrontational posture when dealing with private companies. Lee's article cited a series of discussions on Declan McCullagh's Politechbot mailing list on this subject between the EFF's Danny O'Brien and antispammer Suresh Ramasubramanian, who has also compared the EFF's tactics in opposing Goodmail to tactics used by Republican political strategist Karl Rove. Spamassassin developer Justin Mason posted some criticism of the EFF's and Moveon's "going overboard" in their opposition to the scheme.
The dearaol.com campaign lost momentum and disappeared, with the last post to the now defunct dearaol.com blog—"AOL starts the shakedown" being made on 9 May 2006.
On August 4, 2006, AOL released a compressed text file on one of its websites containing twenty million search keywords for over 650,000 users over a 3-month period between March 1, 2006 and May 31, intended for research purposes. AOL pulled the file from public access by August 7, but not before its wide distribution on the Internet by others. Derivative research, titled A Picture of Search was published by authors Pass, Chowdhury and Torgeson for The First International Conference on Scalable Information Systems.
The data are being used by Web sites such as AOLstalker for entertainment purposes, where users of AOLstalker are encouraged to judge AOL clients based on the humorousness of personal details revealed by search behavior.
In October 2006, AOL UK's ISP business was sold for $688m (£370m) to Carphone Warehouse.
* Marc Andreessen (Netscape co-founder and AOL Chief Technology Officer) Jim Barksdale (former director)
* Among the announced plans are free email services.
*Games.com is an online page featuring browser-based games. it is part of the main AOL website, under games.
On Friday, August 25, 2006, AOL announced that it had signed a deal with several major movie studios to open an online video store allowing users to "download to own" full length movies and television shows. The deal was signed with News Corporation's 20th Century Fox, Sony Corp.'s Sony Pictures Home Entertainment, NBC Universal's Universal Pictures, and former corporate sibling Warner Home Entertainment Group.
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Category:Companies based in Dulles, Virginia Category:Companies based in New York City Category:Companies established in 2009 Category:Companies established in 1983 Category:Online service providers Category:Internet service providers of the United States Category:Internet services supporting OpenID Category:Former Time Warner subsidiaries Category:Global internet community Category:Web service providers Category:Orphan initialisms Category:Pre-World Wide Web online services
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