AOL Signs Pact With E-Machines

Share this article:
America Online Inc., Dulles, VA, unveiled a marketing alliance yesterday with Korean-backed E-Machines Inc. that will offer free personal computers to those who sign up for three years of online service.


Next week, the companies are expected to launch a special promotion to sell $399 basic E-Machine computers with a $400 rebate to buyers who sign on to AOL's CompuServe 2000 for three years. Consumers will basically get the computer for the cost of the online service, about $20 a month.


AOL said under its new deal with E-Machines, which includes a minority investment by AOL in E-Machines Inc., both America Online and AOL's CompuServe 2000 software will be integrated into eMachines' PC.


AOL is predicting that the deal will boost the number of computer users connected to the Internet, especially among lower income consumers. In addition, by locking consumers into longer-term deals for its basic service, AOL can consolidate its lead as the No. 1 Internet access provider.


E-Machines has said it expects to reach $1 billion in sales this year, and has become one of the top five PC makers in less than a year.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Agency

Mohegan Sun Bets on an Integrated Customer Experience

Mohegan Sun Bets on an Integrated Customer Experience

Casino and entertainment destination Mohegan Sun went all-in and overhauled its website to improve its guest experience online and on-site. The casino's payoff was big.

Former Lenovo Executive to Head Digital Marketing at Interakt

Former Lenovo Executive to Head Digital Marketing at ...

Elijah Degen brings 15 years of experience to his new role at the digital agency.

Analytics Is a CMO's Best Friend

Analytics Is a CMO's Best Friend

CMOs who want to extend their tenure should embrace analytics to improve marketing performance and enable innovation.