Feeds

AOL and Dixons confirm ISP distie deal

Rumoured to cost £100m

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

It's been confirmed that Freeserve is to lose its favoured place in Dixons' stores trumped by rivals AOL UK.

Financial details surrounding the deal were not disclosed although some sources claim it will cost AOL around £100 million for the privilege of flogging its ISP services in Dixons' stores.

AOL will become the preferred ISP to Dixons customers through the retailer's 1,100 PC World, Dixons, Currys and The Link stores in the UK.

The agreement will also enable AOL to be preloaded on all Dixons own-brand PCs.

AOL's narrowband products will be plugged in Dixons' stores from February 2004. AOL's broadband product will replace Freeserve's ADSL offering on the shelves from February 2005.

Predictably, AOL is pitching today's announcement as a brilliant deal. Freeserve's take on it is somewhat different. Essentially, it claims that it has decided "not to renew its…distribution agreements".

In fact, had it been forced to match AOL's cash offer (estimated to be anywhere between £10 million and £100 million depending on who you speak to) it might have affected Freeserve's stated aim of "reaching profitability in 2004".

Either way, Freeserve insists that it has been "steadily reducing its reliance on Dixons for customer sign-ups" - so the loss of this potentially marketing deal is not an issue.

Said Freeserve chief exec Eric Abensur: "We have been prepared for the possibility of a non-renewal of the Dixons contract for some time. Over the past two years a major part of our efforts have focused on diversifying our distribution channels across the UK, both offline and online." ®

Related Stories

BT admits distribution talks with Dixons
Dixons and Freeserve deny split

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.