According to the press (Hu, 2002), AOL is one of the companies to
start charging fees for their Instant Messenger (IM) Service. The reason
cited for this is the decline of advertising revenues in the Internet
context, coupled with a declining subscriber growth. Thus nonmembers are
charged fees for certain features of the Instant Messenger.
It is understandable that AOL would want to explore revenue
generating options in the Internet economic climate. I don not believe
that this is as such unethical, since members continue to enjoy the service
free of charge. Whether charging fees for IM services is the best way to
pursue their financial goals is however questionable. The concern of Yahoo
and MSN, that this feature would drive customers to competitors, is not an
invalid one. It is possible that if the service is not made unique enough,
competitors will take over much of AOL's clientele. The company could thus
sustain substantial losses in both revenue and clientele. Thus AOL could
sustain substantial losses in terms of both revenues and subscribers. A
better proposition could be to charge fees for a different version of the
Instant Messenger - such as an IM service specifically designed for
Because IM services are still offered for free by several companies,
I do not believe that adding fees to those offered by some companies will
pose a problem for users who cannot afford to pay. Fortunately there are
still many options available in terms of IM services on the Internet.
Depending on the quality of the product required, the user has the choice
of payment or nonpayment. As long as this possibility exists, I believe
that companies should also have the choice of whether or not to charge
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