AOL Cuts Back on Blogs to Save Cash
AOL Cuts Back on Blogs to Save Cash
by , 12:40 PM EDT, July 25th, 2008
AOL is apparently telling some of news blogs under its wing to cut back on posts in order to trim down its budgets. The sites that are impacted by the move fall under AOL's Weblogs division and include DownloadSquad, Diylife.com, and The Unofficial Apple Weblog. All have been asked to stop posting content until July 31, according to paidConent.org.
The moratorium on content is bad news for the impacted blog sites and their writers who earn their pay based on posts they publish, and also for readers that look to the blogs for news and other content. Diylife.com appears to have been handed the short end of the stick since it will be shut down completely.
In a memo to its sites, Weblog stated "The goal is to safeguard against further budget overages, thus protecting our business and hopefully continuing as usual (though maybe a little restrained) in August. Going forward we will remain slightly leaner, but my hope is that by the end of the year we'll continue to ramp up as we have historically."
TUAW will be allowed to publish one or two App Store articles a day, and DownloadSquad posters are expected to cease publishing all articles through July 31.
The post cutbacks in the end may have more of a negative impact than positive since readers could start looking elsewhere news, and the people behind those posts may have to look for alternative places to make money.
While AOL's bloggers are taking a hit now, other parts of the company will get their turn soon, too. The Internet company is also discontinuing some of its other projects including Bluestring, Xdrive, AOL Pictures, AIMWorld, and MyMobile. AOL Video Portal has begun a transition to become part of AOL Programming Video Experiences and should be completed some time in the company's fourth quarter.
The cuts are intended to help make the company more attractive to potential buyers, but ultimately may make AOL less attractive to its customers and employees.
Observer Comments
How does this help AOL? Don't they make money from ads attached to those blog posts?
I suppose lower posting rates will reduce traffic to the sites & thus cut bandwidth expenses, or that's what they're assuming??but people not using RSS will simply continue to hit the sites and run up the traffic counters.
To me, it appears as if AOL is cutting off a hand to keep from scratching a rash.
Let me get this straight. After going on a buying binge and buying everything in sight--they are now going to discontinue x-drive--where I store all my mp3 files? Why the hell did they buy it to begin with? They bought Winamp and that turned to crap. Time Warner is the absolute worst run company in the universe. I know because my cable service totally stinks. If they had any vision at all they would have merged aol with their horrible cable unit and they would still be a valuable company. If it weren't for the fact they have no competition in cable they would be bankrupt. They have the reverse Midas touch, everything they touch turns to crap.
QuoteDirt Road wrote:
To me, it appears as if AOL is cutting off a hand to keep from scratching a rash.
Very funny.
Very sad when a giant corporation cuts daily expenses for something such as TUAW by $500/day. Let me see if I follow the logic.
Fewer posts save money in reduced payouts to the writers.
Fewer posts lead to fewer visits as people like me realize that the site is not being updated.
Fewer visits turns into fewer visitors and the site is shut down for lack of revenue.
Which saves lots of money.
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