Former CEO of AOL, Steve Case, discusses the early days of the internet and AOL's success. He shares insights on the third wave of the internet disrupting industries like healthcare. They explore spreading venture funding to non-coastal cities and the power of optimism in entrepreneurship.
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Quick takeaways
The evolution of the internet faced initial skepticism but eventually transformed connectivity and business operations.
Legislation transitioned internet pricing to monthly rates, driving affordability and widespread adoption.
Community-focused services like AIM were pivotal in AOL's success, highlighting the power of connectivity.
Deep dives
Evolution of the Internet Over Four Decades
The podcast episode delves into the evolution of the internet, highlighting the early days when only 3% of people were online, spending an average of one hour per week due to high costs. Despite initial skepticism, it took a decade for the internet to gain traction and become widely embraced, eventually transforming how people are connected and how businesses operate.
Transition from Hourly to Monthly Pricing Model
The discussion transitions to the transition from hourly pricing to flat-rate monthly pricing for internet access. This change was facilitated by congressional legislation to commercialize the internet in the late '80s and early '90s, allowing for more affordable and accessible internet usage, leading to increased adoption and accelerated internet growth.
Community and Communication as Key Focus Areas
The importance of community and communication services in the success of internet services like AOL is emphasized. By prioritizing people-centric features like messaging and community building, companies like AOL were able to engage users effectively and drive subscription growth, highlighting the significance of connectivity in the digital landscape.
Shift Towards Partnering and Alliance Strategies
The episode underscores the significance of partnerships and alliances in entrepreneurship. It showcases how working collaboratively with other companies, policymakers, and stakeholders can drive innovation, navigate regulatory challenges, and create opportunities for growth, emphasizing the value of collective efforts in driving change.
Importance of Embracing a Long-Term View
The conversation emphasizes the importance of adopting a long-term perspective in entrepreneurship. By focusing on enduring partnerships, policy engagement, and persistent efforts, entrepreneurs can navigate challenges, influence positive changes, and contribute to long-term industry transformation, highlighting the role of perseverance in achieving impactful innovation.
Steve was CEO of AOL during its meteoric rise from 1991 to 2003. He’s also the chairman and CEO of Revolution, which has invested over $1 billion in startups, and the author of several books, including Rise of the Rest and The Third Wave.
In this episode of World of DaaS, Auren and Steve discuss the early days of the internet and the challenges of getting people to embrace it. Steve highlights the importance of community in AOL's success and the launch of AOL Instant Messenger (AIM). Steve also shares his vision for the third wave of the internet, where the internet meets the real world and disrupts industries like healthcare.
Auren and Steve also discuss Steve’s extensive investments with his firm Revolution and his Rise of the Rest Initiative, which seeks to bring venture funding and innovation to non-coastal cities. They close out the conversation with a discussion about the power of optimism in entrepreneurship and the importance of partnerships and policy in driving change.