CHART OF THE DAY: AOL's Revenue Plunge

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AOL's business continued its long slide today when Time Warner reported earnings. Advertising revenue was down 18% y/y, and subscription revenue was down 29% y/y.

The bad news for AOL? Its ad revenues are tied to its sub revenues. A large chunk of AOL's traffic comes from subscribers. As they go away, the traffic goes away. As the traffic goes away, the advertisers go away.

Good thing for shareholders Time Warner is spinning this basket case out in December.

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