Dial-up firm in a race to diversify

DIAL-UP FIRM IN A RACE TO DIVERSIFY
[SOURCE: Los Angeles Times, AUTHOR: James S. Granelli]
United Online Inc. is preparing for life after dial-up. The Internet service provider still gets two-thirds of its revenue and most of its profit from providing Internet access — mostly through the dial-up connections it helped pioneer with its low-cost NetZero and Juno brands. Tech experts have long said that the market for dial-up Internet access is dying, but its staying power surprises even United Online's chairman and chief executive, Mark R. Goldston. "We have this cash-cow machine that has a much longer tail than anybody thought," said Goldston, 52, who previously ran Faberge USA Inc., Einstein/Noah Bagel Corp. and L.A. Gear. But it's United Online's shift into new kinds of online services, similar to the transformation Time Warner Inc.'s AOL is going through, that has Wall Street impressed. It's a race to grow revenue from online advertising and other Web business faster than the dial-up business collapses. No one is giddy over dial-up's future. The business is expected to give way to broadband in five to eight years, so providers are using the cash from Internet access customers to fund ventures in growing markets.
http://www.latimes.com/business/printedition/la-fi-online29may29,1,1647983.story?coll=la-headlines-pe-business
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