How Much Did It Cost AOL To Send Us Those CDs In The 90s? “A Lot,”
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A few buddies of mine got started here. I've also read Zuck used to mess around in the scene. Aol was my first foray into the internet at the age of ten or so (maybe younger?). My screen name was JediForce3 (Yup, i was a true geek). I think it was Aol 2.5?
Anyone else here used to mess around with AOL back in the day? Steve Case used to get a lot of crap, but I always respected him + looked up to him as the founder of AOL.
First, with BBS's on my Packard Bell Pentium 60mhz (got from Costco, had that famous floating point bug). That's when I learned the difference between a local call and a local "toll" call (same area code as you doesn't mean local...oops)
Then I got on AOL (starting with 2.0 for DOS I think), Prodigy, CompuServe, and eventually MSN.
On AOL I ran into those "proggies" and met a guy named Cybermun who explained to me how to write them (he wrote AoHades). He gave me a copy of VB 3.0. I found it totally accessible in that I could design my UI point-and-click and then figure out how to make it work.
I'd ask Cybermun questions endlessly and he'd never answer directly, always forcing me to figure it out. My dad bought me a copy of the white book (The C Programming Language, Kerningham and Ritchie) Hung out in private room "warez2" most of the time.
I was "WalrusPowr" (and a dozen variants of that name). Every time I entered a chat room I'd announce myself with some funny string and "{s walrus" (remember that!? It would play a .wav file, provided you had a file with that name).
After some time I wrote a relatively popular shareware app called AoLOL! (worked on AOL 2.5 thru 4). Each week folks would mail me a check for $14.95 for registration.
AoLOL! added a row of icons to the AOL toolbar and gave you a bunch of extra functionality (most notably a "keep in touch" feature, which would cycle through a list of friends and automatically check if they were online). This was before the Buddy List and before ICQ had launched. Incidentally, I was put in touch with the founding ICQ team, let them use my AOL account to play with the recently launched AOL buddy list, fixed the broken English on their web site, etc. (they were four young Israelis). They offered me a job but I was in high school, had no drivers license, etc. My UIN is 104006 (they started at 100,000).
I also wrote an app called "AoLMNOP" which was a bit of a joke. It launched of "Ao" proggies and generally mocked the entire scene.
I can't tell you how many hours I spent staring into a 14" CRT between 10PM at 4AM chatting and "coding" (VB3 and mostly "Sendkeys". Some Windows API calls. Ha!) while my parents thought I was asleep.
My younger brother tells me he'd wake up to the sound of me laughing out loud and hammering away at my keyboard. It was a big part of my youth. Ahh, fun times.
As silly as "progs" were, it catalyzed me to learn the Windows API, how to find and share code online, and how to build my first website (for the purpose of sharing my AOL code). It even gave me my first experience working with a remote team.
Now I run a web design and programming shop, with one of my best friends who stayed up on weekends with me "hacking" AOL in middle school.
(SN was EatenByCow, was a member of "Unity" if that rings any bells.)
FWIW my punters were named AOElephant and Hex.
The BBS's were the foundation of almost every person I have met in tech, every job, all dev, every startup I have been involved with and there is a very strong camaraderie amongst the early BBS hackers (most of us went on to become v early web hackers).
So I see from how inside AOL you think your theory might hold, but outside of it there was an entire larger network that was far more interesting
I ended up really getting into programming a bit later via mIRC scripting, though.
(The Netflix postage cost question came up on Quora first, then you can guess which tech publication (http://techcrunch.com/2010/10/04/quora-netflix/) picked it up).
My family has had an AOL account since v2.5 (1995?), but the discs never stopped coming. Always seemed like an obvious waste of money, with a trivial fix.
It's a powerful thing to have that support, AOL start page/"walled garden" instead of the wide open Internet.
I swear near the end AOL was offering more hours than existed in a month.
Call them the first spammers of the digital age if you will.
On a somewhat unrelated note, the CD promo led to one of my favorite commercials: http://www.youtube.com/watch?v=3OqQYk2TC-8
Wouldn't a better question be how much they saved per employee by outsourcing nearly all their callcenter jobs? I would guess from $70 per person per day to $70 per month. And yet they are still hemorrhaging.
Also, it turns out it is a lot harder than people think to find 5 friends or coworkers that you can convince to sign up for one of the offers. The company still gets its $35 for each of the signups, without having to cough up an iPod.
That said, AOL isn't the first company to bank on sending out free stuff to get a lot of customers. I believe Schick gave out free disposable razors to nearly everyone in the States at a time when there were no disposable ones. After exhausting their seed money on sending those out once, they raised a lot of money for now customers were flocking out to buy one.