AOL Tests freebie boundaries

[neo1980]

America Online is sweetening its standard free trial offer for selected users of its AOL instant messaging service.

In its various experiments with pricing and special offers, the online giant is offering a small number of AOL Instant Messenger (AIM) users a chance to receive 60 free days of AOL Internet access. That's 33 percent more than the standard 1,000 hours for 45 days that AOL usually doles out to lure new subscribers.

The pitch caught the eye of one Wall Street analyst who published the finding in a note to investors. The offer comes at a time when investors are raising flags about AOL's subscriber growth. They fear the division's subscription growth is slowing, forcing it to dole out free trials to maintain its rate of new additions. In the long run, more freebies could lower the amount of revenue AOL generates off each subscriber.

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