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Also, AOL was more user friendly than its competitors with an enhanced look and feel and a subscription fee structure that made it easier for members to calculate how much their monthly fee would be. In addition to their competitive strategy, AOL had adopted an aggressive accounting policy of capitalizing subscriber acquisition costs when their competitors expensed such costs. Additionally, AOL amortized its software development costs over five years, which is a long time to amortize in the online services industry.
!995 marked the beginning of many changes in the commercial online services industry...
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