The promotion expands on an existing deal between the two companies that allows AOL members to rent downloaded movies for 99 cents a title. Under the new program, the companies will make 10 "classic titles," including "Steel Magnolias" and "Against All Odds," available for free in the first month. In subsequent months, five movies will be offered. Once downloading is complete, customers have 30 days to watch the film and 24 hours to complete it, once viewing begins.
AOL is betting on digital media as a way to persuade people to pay an additional $14.95 per month for its service on top of their existing broadband bill. AOL has been marketing its broadband service in hopes of stemming the defection of members from its dial-up service, which has witnessed heavy losses over the past year.
In the third quarter of 2003, AOL lost 688,000 dial-up customers, most of whom were paying $23.90 a month for service. That's down from second-quarter dial-up losses of 846,000 members. However, AOL reported 2.6 million "broadband" subscribers, many of whom subscribe to AOL's $14.95-a-month plan.
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