More painful transitions for AOL
Ad growth remained too meager to fully offset declines in subscription revenue, which continued to plummet, as expected, after last August's strategy shift. AOL had 10.9 million U.S. subscribers paying for Internet access as of June 30, a 59 percent drop from its peak of 26.7 million in September 2002.
Overall revenue at AOL dropped 38 percent, to $1.3 billion. AOL accounts for 11 percent of Time Warner's revenue, about half of the 20 percent it had contributed until last June.