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AOL was rated both one of the best and worst Internet suppliers in the UK, according to a poll by BBC Watchdog.[7] On March 31, 1997, the short lived eWorld was purchased by AOL, forcing the 115,000 users to subscribe to AOL. The ISP side of AOL UK was bought by The Carphone Warehouse in October 2006 to take advantage of their 100,000 LLUs (local loop unbundling), which made The Carphone Warehouse the biggest LLU provider in the UK.[8] AOL began life as a short-lived venture called Control Video Corporation (or CVC), founded by William 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. (Klein, 2003) 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 approximately $1 per hour. In 1983, the company nearly went bankrupt, and an investor in Control Video, Frank Caufield, had a friend of his, Jim Kimsey, brought in as a manufacturing consultant. That same year, Steve Case joined the company as a full-time marketing employee upon the joint recommendations of von Meister and Kimsey. Kimsey went on to become the Chief Executive Officer (CEO) of the newly renamed Quantum Computer Services in 1985, after von Meister was quietly dropped from the company. Case himself rose quickly through the ranks; Kimsey promoted him to vice-president of marketing not long after becoming CEO, and later promoted him further to executive vice-president in 1987. Kimsey soon began to groom Case to ascend to the rank of CEO, which he did when Kimsey retired in 1991. 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 additional innovative online interactive titles and games, including: 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. Auditoriums - created with permission of AOL. Consisted of a stage and an unlimited number of rows. What happened on the stage was viewable by everybody in the auditorium but what happened within individual rows, of up to 27 people, was viewable only by the people within those rows. Originally, AOL charged its users an hourly fee, but in 1996 this changed and a flat rate of $19.99 a month was charged. 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. AOL was quickly running out of room in 1996 for its network at the Vienna, VA campus and moved to Dulles, VA a short distance away. The move to Dulles took place in mid-1996 and provided room for future growth. Since its merger with Time Warner, the value of AOL has dropped from its $200 billion high. It has seen similar losses among its subscription rate. It has since attempted to reposition itself as a content provider similar to companies such as Yahoo! as opposed to an Internet service provider which delivered content only to subscribers in what was termed a "walled garden". In 2005, AOL broadcast the Live 8 concert live over the Internet, and thousands of users downloaded clips of the concert over the following months. In 2004 along with the launch of AOL 9.0 Optimized, AOL also made available the option of personalized greetings which would enable the user to hear his or her name while accessing basic functions and mail alerts, or while logging in or out. AOL eventually announced plans to offer subscribers classic television programs for free with commercials inserted via its new IN2TV service. At the time of launch, AOL made available Warner Bros. Television's vast library of programs, with Welcome Back Kotter as its marquee offering. In December 2006, in order to cut operating costs, AOL decided to cease using US-based call centers to provide customer service. They drastically downsized Stateside corporate operations as well. Two weeks before Christmas, thousands of workers were put on notice that their positions were being eliminated altogether, or being replaced with outsourced employees. On January 28, 2007, the last domestic call center (based in Oklahoma City) closed its doors, and, during October 2007, the last call center in Canada was also shut down. All customer service calls are now handled by representatives in Ogden, UT, India, the Philippines, and Mexico. By the end of September 2007 as part of preparation for the New York move, AOL completed the closure of its former primary Network Operations Center, Reston Technology Center, which it sold to Sprint Nextel in early 2007. This sale enabled AOL to consolidate its Northern Virginia operations from three sites (Dulles, Manassas, Reston) to two (Dulles and Manassas; personnel primarily went to Dulles, while machines moved to Manassas). AOL took advantage of the move to both reduce its overall hardware inventory and to determine a "right size" for its Network Operations Center staff after consolidating the three sites into two. As part of the impending move to New York and the restructuring of responsibilities at the Dulles headquarters complex after the Reston move, AOL CEO Randy Falco announced on October 15, 2007 plans to lay off 2000 employees worldwide by the end of 2007, beginning "immediately". That evening, over 750 employees at Dulles alone received notices to attend early morning meetings the next day[16]; those employees were laid off on October 16, 2007, though the employees would remain on the payroll until December 14, 2007 in accordance with the Worker Adjustment and Retraining Notification Act. Other employees whose groups were due for phase-out as part of the restructuring were informed on October 16, 2007 that they would be kept on until December 14, 2007 to complete any outstanding tasks, after which they would be laid off. The reduction in force was so large that virtually every conference room within the Dulles complex was reserved for the day as a "Special Purpose Room", where various aspects of the layoff process were conducted for outgoing employees; remaining employees at Dulles were quick to dub the mass layoff "Bloody Tuesday" in online blogs and news reports[17]. An unspecified number of staff at the former Compuserve facility in Columbus, OH were also released, as well as the entire Tucson Quality Analysis shop, a number of AOL employees working at the former Netscape facility in Mountain View, CA, the development team in France, and practically the entire Moncton, New Brunswick, Canada member services call center site. The end result was a near 40% layoff across the board at AOL, including a substantial number of Systems Operations personnel, a significant change from previous layoffs where SysOps employees routinely suffered only minor personnel reductions. [18]. An additional round of layoffs, mostly confined to analysis groups and the staff at AOL Voice Services in Halifax, Nova Scotia, occurred on December 11 and December 12, 2007[19]. Prior to mid 2005, AOL used volunteers called Community Leaders, or CLs, to monitor chatrooms, message boards, and libraries. Some community leaders were recruited for content design and maintenance using a proprietary language and interface called RAINMAN, although most content maintenance was performed by partner and internal employees. AOL has faced a number of lawsuits over claims that it has been slow to stop billing people after their accounts have been canceled, either by the company or the user. In addition, AOL changed its method of calculating used minutes in response to a class action lawsuit. Previously, AOL would add fifteen seconds to the time a user was connected to the service and round up to the next whole minute (thus, a person who used the service for 11 minutes and 46 seconds would be charged for 13 minutes). AOL claimed this was to account for sign on/sign off time, but because this practice was not made known to its customers, the plaintiffs won (some also pointed out that signing on and off did not always take 15 seconds, especially when connecting via another ISP). AOL disclosed its connection time calculation methods to all of its customers and credited them with extra free hours. In addition, the AOL software would notify the user of exactly how long they were connected and how many minutes they were being charged. In response to approximately 300 consumer complaints, then-New York Attorney General Eliot Spitzer’s office began an inquiry of AOL’s customer service policies. The investigation revealed that the company had an elaborate scheme for rewarding employees who purported to retain or "save" subscribers who had called to cancel their Internet service. In many instances, such retention was done against subscribers’ wishes, or without their consent. Under the scheme, consumer service personnel received bonuses worth tens of thousands of dollars if they could successfully dissuade or "save" half of the people who called to cancel service. For several years, AOL had instituted minimum retention or "save" percentages, which consumer representatives were expected to meet. These bonuses, and the minimum "save" rates accompanying them, had the effect of employees not honoring cancellations, or otherwise making cancellation unduly difficult for consumers. 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. AOL eventually fired the representative who had spoken to Ferrari and issued an apology.[25] Currently, Free Account members who try to cancel their accounts, via AOL Keyword "cancel", are only redirected to a website allowing them to choose from three different paid membership plans, making it difficult to cancel the account. Also, despite cancellation before a free trial ended, customer's AOL e-mail accounts would be suspended stating that you owed them for that month. In 2000, AOL was served with an $8 billion lawsuit alleging that its (now outdated) 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. When AOL gave clients access to Usenet in 1993, they hid at least one newsgroup in standard list view: alt.aol-sucks. AOL did list the newsgroup in the alternative description view, but changed the description to "Flames and complaints about America Online". With AOL clients swarming Usenet newsgroups, the old, existing user base started to develop a strong distaste for both AOL and its clients, referring to the new state of affairs as Eternal September. In early 2005, AOL stated its intention to implement certified e-mail, which will allow companies to send email to users with whom they have pre-existing business relationships, with a visual indication that the email is from a trusted source and without the risk that the email messages might be blocked or stripped by spam filters. 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. 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. Among the announced plans are free email services similar to many 'free' email providers. Chatrooms are included with the free service, but users are required to verify the age of an account created under the free plan using a credit card. AOL charges $1 to the credit card provided and then immediately refunds the charge. Thus people making new accounts currently experience problems whereas those who have simply converted their pay accounts over to the free plan can chat without worry. Recently, problems have arisen with Xdrive signups. People who sign up for Xdrive using an existing AOL screenname have had their screenname disabled without explanation. Those who had been using AIM as a free service, even under screennames in existence for many years, have been unable to get the accounts reinstated or access the data associated with them. In addition, affected users with free AIM accounts cannot reach AOL for help or even for information, as their phone support explicitly excludes such users. AOL is apparently either unaware of this problem or has no intention to investigate or rectify it. In addition canceling the account seems to be very difficult even for paying customers. Online help suggests that it can be done with either support email or by phone using 1-800 number. Unfortunately due to constant technical problems the phone number and the email address are not visible for every paying account as they should be. Even with email canceling option many have stated that phone call to 1-800 number was required while others have found that changing their credit card was the only option. 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 Time Warner Inc.'s Warner Bros. Home Entertainment Group[55]


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