AOL stock falls on news of subscriber slippage

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The stock of America Online, Dulles, Va., fell by $3.50 to $32 on Tuesday following news of a Securities & Exchange Commission filing by the company stating that it is having problems keeping subscribers. The online service attributed the problem to competition from the Internet and competing online services.

The filing comes a day after the splashy launch of a new $300 million-plus marketing campaign designed to pitch AOL as an "Internet online service" designed for both new and sophisticated users. Agency is TBWA Chiat/Day, New York.

AOL currently has 6 million subscribers but has had a growing problem with turnover as new users try the service and then drop it after the free trial period ends. A portion of AOL's new marketing campaign is designed to counter that churn problem.

Copyright October 1996 Crain Communications Inc.

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